A very good year with excellent finishing touches marked by an obvious profit taking knee-jerk reaction as the first day of new year (2014) trading commences.
SnP500 potential short-term future price actions remains a mystery to date. But for the purist EW'ers it is a nested 1-2-i-ii-iii with the iii-rd either still in progress or already has completed. To be followed by the iv-v-3-4-5 waves for at least a 9-waves rally toward 2102 as Nominal Target for a complete 1-2-i-ii-iii-iv-v-3-4-5 complex rally.
>> SnP500 Daily: http://img15.imagefra.me/i513/aarc/141u_a86_ubk5c.png
Under SOP TA; a breakout rally above the last high of 1849.44 should result in a short-squeeze and presumably another strong rally. However, the intraday squiggles indicate possible missing waves towards the 1862 target before the pink iii-rd wave completes.
Trading strategy in early January 2013 (Jan 8, 2013 Instablog) was an easy one since a vertical strong rally happened after a deep pullback in Dec 2012 caused by the Sequester Debacle. The sequester problem was solved in Dec 31, 2012.
This time around;there was no crisis what-so-ever in December 2013 to buy stocks at significant discounts (Rule of Alternation?).
Thus, chasing this rally is far more suitable for the best-of-breed Trend Traders.
In this regard; I would prefer to recommend the better trading strategy = Wait and Watch what will happen next.