No change in outlook; Dow seems set to retest the 12200-12400 levels before making the next turn lower;
Shorts should not rush so soon and the ideal strategy would be to open the first set of shorts as close to 12400 [12440 to be precise as per my charts] as possible with the Jan 12500 Call as a hedge [1:2 ratio recommended] and the next short after a close below 12k levels [Safe traders can wait for volume and momentum to convincingly breach 11800 levels and go full throttle here]
IMHO, the maximum upside we can have from here with all the good news and Santa Rally is capped at 12600 [12580 to be precise as per my charts]. It is very likely that we will see sub 11800 levels prior to Dec expiry and then come back for a retest of 12000-12200 once again [yes lots of volatility floating around]
Once we get 3 consecutive closes below 11400 [expected closer to January '12 series expiry], bulls on Dow can say a full and final good-bye to 12k levels for a long time to come IMHO
[Corresponding upside levels on SnP are 1280-1300 levels and downside targets for SnP are 1180, 1150 and expect to see all these resistances and supports in the 8 weeks to follow from today]
