Market Preview (12/31/2012-01/04/2013) and Watch List

This week is ALL about what happens today and tomorrow regarding the fiscal cliff. Tuesday the markets are closed (New Year) but as we roll into Wednesday, things could get nasty if there is no deal. There is economic data which is due this upcoming week (ISM Mfg, and employment report friday) but I believe they wont have much of an impact due to all eyes being on what's happening in Washington.

The SP500 dropped below the 50 DMA on Friday and the next level I am watching is the 1400 level which is right above the 200 DMA. If things do get nasty in the market due to the news from Washington, I am looking as low as the 1375-1380 level.

WATCHLIST

BPZ - pull back to support then go!

CBEY - bounce off this new support to go on for a flag break

CVC - could go real high if it crosses over the 50 DMA, watch list for a couple days

HERO - flag

RSYS - room to go to 3 and even more (strong support pushing it up)

Good luck this week!