22-Dec

Markets weak on low volume as we head into the holidays

As soon as any buying appeared in the markets, that move was sold all day long. We had an all day downtrend. The last 30 minutes provided a little relief taking us off the lows of the day. The SP has now dropped back into the 850 - 860 levels of support. Tomorrow will likely see more low volume trading as we go into the shortened holiday week. This will allow for markets to be pushed around rather easily. One data point I have mentioned before is Monday after options expirations tends to be down, and we saw that yet again today. NL did tick up a bit more today reaching for the 200 levels and pulling the NH_NL index back toward -200. The short term overbought conditions have been relieved, but the lack of upward progress is troubling, an indication of no willing buyers at prices above.If we test the 850 level, we will need to see a false side break and reject the lows near that level. Volume needs to come into this move on the upside. In a holiday week, anything is possible... maybe Santa has already given us our rally? Today was uglier than it appears from the close, downside volume was over 80%, so most stocks were being sold today. Also, the tick reading rarely got over +300 indicating most of the trading was sellers hitting the bid price. When buyers have no one following up with them, then they have no alternative but to flip and become sellers unloading their purchases.We'll see if Santa has any intentions to show up tomorrow and then Wednesday is only a half trading day.

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