Stalling At Resistance

Today we only had a 5 handle range. Nothing to sneeze at. 

The ES rally from 11/16 extended into Friday as expected – the turn window on 11/26-11/27 could reverse us down sharply if the Fiscal Cliff talk sounds less jolly.

Mondays lately have been very very slow, and today was the same. 

I do not know what they are doing with all this fiscal cliff stuff but with only a few weeks left

on the trading calendar, they better sort out something soon, until then we watch the charts.

If you have a look at the dow jones daily chart we seem to be stalling at previous resistance. 

dow jones chart

My thoughts are that we have had a big rally (over the last week), and knowing that we are going into the end of the year I doubt we will just SKYROCKET from here. 

So again I am talking about a bit of a pullback that could be starting  here and is overdue, and then soon after a rally or what I call a santa clause rally that is already sticking its head out. 

happy trading :-)

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