The SPX was +2.8% for Nov and is +26.6% YTD as it closed +1.1% Fri to 1805.09 on the “funny money” NFP report, which was similar to the ridiculous NFP report etc before the election which the BLS fabricated for Obama.
The index finished -.04% last week after 8 straight positive up weeks, and remains O/B as the 5 RSI momentum indicator went out at 88.40 after making an 89.67 high last week when the SPX made an 1813.55 bull cycle high, after which it declined -1.9% in 5 straight down sessions to a 1779.10 intraday low, but on a closing basis is still holding the 20DEMA which went out Fri at 1788.76 after the rally.
In addition to being significantly long term O/B, there was also some short term symmetry on both 11/29/13/and 12/6/13. The 1813.55 cycle high on 11/29 [11/30 was Sat]] is the 1.5 fib extension time ratio of the 8/2/13 1709.67 and the 9/19 13 1729.86 highs.
Also, 1812.74 is a square of 9 angle measured from the 667 bear market low.
The major gann angles are multiples of 45 degrees, and if you measure from the 10/11/07 last bull market top at 1576 using a 45 multiple you get the symmetry date of 12/8/13 which is a Sun, so the Fri 12/6 1779.10 low is in play with that symmetry.
Because of the strong 2013 gain in the SPX YTD there are various strategy alternatives for hedge funds this month. They could simply continue to hedge their long positions with futures and options, or else lock up a payday by selling longs with significant gains and taking off some hedges as the year winds down. That option would be better for day traders to capitalize on.
The initial Fib Extension price symmetry of the 1576-667 bear market is the 1.272 Fib Ext at 1823.25 I will address the next significant major time symmetry as we get closer, but it is in the 1st Qtr of 2014.
December is obviously a strong seasonal month, and even more so because inflation of asset prices is a Ponzi Scheme, so expect money managers to be happy at year end regardless of what the fed does or doesn’t do with any token Taper, that won’t change much of anything right now.
You can download my six free timing calculators at www.geometricmarkets.com.