There was a sea change in the character of this market after the election. Before we had a slow weakening market but now the downtrend has matured into a more volatile, top heavy market. The rallies just don't last and we'll likely to see multiple 1 day rallies which will only lead to selloffs the next day for the rest of November. With options expiration next Friday, I expect the market to stabilize, although likely at lower levels from here. I still think we don't breach 1350, but now I see us trading more between 1360 and 1390, not 1370 and 1400.
You can probably safely buy dips and sell rips for the next 2 weeks, after that I think we'll squeeze higher for good back to 1430 once the market figures out that the fiscal cliff will just end up being a fiscal can-kick.
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