Thursday, December 23, 2010


If anyone needs evidence to support why the market should have more holidays, today would work quite well. Volume was extremely light, breadth slightly negative, and it was deadly dull. If we were closed, no one would have noticed the difference.

Normally, the days in front of holidays will have some pockets of upbeat action, but this market has become so extended, there just wasn't much left for the hot money to really move. It will be thin all of next week also, so I'm hopeful we'll have better holiday spirit in spots.

The bigger picture remains unchanged. The major indices are all within a few points of their annual highs, and the bears are unable to make any progress at all. The argument that market players are just too complacent is very easy to appreciate, but it just hasn't mattered. That may be due in part to positive end-of-the-year seasonality, but there just isn't any negative price action yet to indicate that the bears may finally have some success.

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