We are sitting at the top of a market. There is not much incentive to buy unless you are just looking to pick up a .20c or maybe a .50c move here and there. The odds just are not really in your favor for a bigger move to the upside. The market is looking fairly strong at the moment, so any moves to the downside are also not likely, at least not today, and probably not tomorrow either. Part of the reason for this is a bit of an influx of positive news. In addition to this morning's GDP numbers, consumption growth looks to remain stable, consumer spending looks to be inline with the recent growth in retail sales (Personal Income and Spending report released Wednesday morning at 08:30 EST). We saw the increase in existing home sales this morning, which means tomorrow's report on New Home Sales (at 10:00 EST) should show better than expected results.
The fact that the market has remained high amidst the recent advance in the dollar, combined with good economic news flowing in, makes a retest of the bottom of the range unlikely before the new year. If anything, there is reason to believe the market will see new highs before the end of the year.
As far as trading goes, I wouldn't be looking to land any big runners (if you are trading the Spiders that is), I would just play the levels, look for some scalp plays and start building your trading strategy for the new year.
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