Tuesday, December 23, 2008

Slow Gooey Churn

Although traders tried once again to get something going in the final hour, each little bounce was met with more downward pressure. The net result was another day of losses. However, probably the most concerning thing is that the major indices failed to hold short-term support levels and are back to the intraday levels from two Fridays ago when the market was surging higher following November’s jobs report.

This time of year is usually defined by some positive action as sellers take a break and traders hunt for pockets of momentum. Unfortunately, given how terrible this past year has been and how consistently those who have chased strength have been punished for their efforts, it shouldn’t be too surprising to see the market unable to get anything going to the upside.

We have a half-day of trading tomorrow, so we expect the session to be completely uninspiring, but Santa still has time for an appearance. Five days of disappointing action leaves room for some action in the opposite direction, but I’d be surprised to see any real progress to the upside in the coming days. I’ll still be looking to see if traders begin moving with some more confidence, but there’s little reason to expect them to change their flippin’ ways.

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