The bulls managed yet another positive day, which gives the S&P 500 a record of 14 wins and 2 losses so far in December. It was just another day of slowly grinding higher without a worry in the world. We had a little mid-afternoon weakness, but it didn't last long, and the buyers had us back near the highs at the close.
Breadth was only slightly positive on the Nasdaq and volume understandably slowed, but the price action had few flaws. It certainly was another good day for the bulls, but momentum slowed, and it was very tough to chase new buys. The market is just a bit too extended now to aggressively do much chasing, especially with the added volatility created by lighter volume.
Tomorrow, which is the last day before the holiday break, has a good track record, but it would be much more interesting if the market hadn't run up so much without a rest. It is going to limit the areas of upbeat holiday trading and could easily turn into a day of profit-taking if the bulls don't have better energy.
Be ready for some random, light-volume trading action tomorrow.