Large and in Charge

Little did we know at the time that the spread would move so quickly back up to near our stated target -- in only six weeks. See the zoomed-in daily chart below through this past Friday's close:

SPY vs. IWM Through Nov. 28

Click here for larger image.

Source: CQG

On Nov. 19, this spread closed at a value of 1.97, very close to the January '08 high of 1.996, and essentially hitting our target area. It's pulled back a bit over the past two weeks, and sits just above the trend line starting from the lowest low but beneath the downtrend line from those January highs.

Thus, given this spread's chart position -- caught between both near-term support and resistance -- I would take 50% of the long off now (if you haven't already done so). I believe in locking in profits.