9:00 AM - I was really hoping to see a good triad of red candles, so I think today may make the third day and a good exit point. Yes, I consider Wednesday 12/12/12 red, even though it looks solid green on the SPY chart. UPRO was red and so was XIV  The market, if you believe the analysts, seems intent on giving Washington more time, and is discounting the rhetoric for now. I don't believe this will be the case forever, but you can feel it in the half life of price action against the news. Yesterday's volume was not what you would expect to see for a powerful short term bear move. 

A good reflection point for SPY is the 20 day EMA at 141.70 or 141.20 (upper descending trend line now acting as support) if that line fails. Actually, XIV worries me some (VXX being the inverse to that, which I am in). It found strong support at the old former high price line, which also is the old BB line. That line has acted as support and as a magnet of pricing for the better part of a month. So far in premarket XIV seems to be holding much better than any of the indices, so we will have to watch it. 

As always, I will post my trade out, which I anticipate for today, unless new information comes to light.

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