October 5th

Full disclosure...went 50% long Monday at the close.  125% long at yesterdays close.  Took 50% off today at the close (a bit too soon I think) but am still 75% long.

The charts below make an unreal case for taking longs off at 1160-1165 and at the 50 day ema/sma and even shorting for a pull back before another possible move up to eventually try and test the 200 day.  The first chart is the 60 minute chart.  The second is a daily chart.  The trend lines and Fib levels all come together in the same 1160-1165 area and with the 50 dam ema and sma at 1190 and 1183 you can see them coming down and possibly meeting in the area as well making it an even better shorting opportunity (or at the very least a chance to take off long positions).

The third chart is the early 2008 lower low.  Today's market looks the same.  In 2008 you will see the market first tested the 23.6% Fib retrace, had a small pull back and then challenged the 50 day only to pull back again.  Today's market looks to be setting up a similar pattern

http://stockcharts.com/h-sc/ui?s=$SPX&p=60&yr=0&mn=3&dy=0&id=p06754384142&listNum=1&a=244530375 (60 Minute)

http://stockcharts.com/h-sc/ui?s=$SPX&p=D&yr=0&mn=7&dy=0&id=p30285842435&a=243753337&listNum=1  (Daily)

http://stockcharts.com/h-sc/ui?s=$SPX&p=D&st=2007-06-04&en=2008-06-23&id=p88951979887&a=244348898&listNum=1 (2008)