Intraday Look and Analysis: Subject to Political Whims

The SPY is jumping up and down, and all around, intraday with each passing headline about the Fiscal Cliff. We have seen the market indeed become increasingly volatile and sensitive to Fiscal Cliff news of late. However, keep in mind we are still wading through lighter volume holiday trading. In my estimation, the real test of mettle will come in the first several weeks of January when everyone is back at their desks.

Observing the 30-minute SPY chart below, we can see a clear floor at the $140 level, or roughly 1400 on the S&P cash. On the upside, the ceiling is about 1416/7. Keep those levels in mind into the final two hours of trading of 2012 and beyond.

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