Fridays traditionally carry out whatever trend was going on earlier in the week.
If big bear on the prowl, then Friday will growl.
If big bull on the stampede, then Friday gains will proceed.
What it means for the next week and beyond is less clear. The two most likely scenarios are:
1) Settle into range now. With low of 1400.
2) Run to 1500 before correction.
In previous commentary I noted that #1 was the most likely as we attempt to clear other hurdles like the Fiscal Cliff. But I do see how the headlines of making new highs could attract a rush of fresh money from the sidelines before hitting a serious point of resistance like 1500.
Because #1 is not that ominous and #2 is bullish, then I will stay long this market for now. If the run to 1500 does ensue, then I will look for spots to take profits as shares will likely correct thereafter.
Best,
Steve Reitmeister (aka Reity… pronounced “Righty”)
Executive VP, Zacks Investment Research
Pelias' views 