As we sit in front of the screens this afternoon there's yet again not really anything worth doing besides seeing the 1200-1220 resistance levels on the S&P 500.  As such the question becomes whether the gap from November 21st will fill first and we then find resistance at 1220 for a breather at the very least…or will 1200 set its foot down as resistance.

The two resistance levels are marked with the horizontal red lines on the 30 minute chart below.

If and when we overcome 1200 solidly we plan on adding a little SPY again for Bucket 2.  If 1220 then turns out to be resistance it wil become clear soon enough, but we must also give the tape a chance to turn into a santa beta chasers rally…and testing the market for that will require a small initial long position above 1200. 

The best traders we know are sitting this market out for the time being…binary doesn't even begin to explain the risks at hand here.

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