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Friday, December 26, 2014

Daily update 12/26 Doji day

The futures gapped up yet again this morning.  There was a flurry of buying after the open then chop around in the afternoon before selling off into the close again.  At days end the futures were only 1 tick above the open.  That made it a doji day even though SPX does not show that.  Here is the chart.

It was the lightest volume for a full trading day all year.  I heard Jon Najarian on TV today saying the market was going up because of a lack of sellers rather then a buying frenzy.  That confirms what I have been thinking.  Lets look at the most important chart IWM.

IWM got above the line early this morning.  However, the afternoon sell off took it back slightly below it.  Volume was actually lighter then on the half day Wed.  Confidence booster there.

This is the third day in a row we have sold off going into the close.  That could be a sign of some mutual fund redemptions going on.  That could just be a matter of portfolio adjustments.  Both stocks and bonds were up for the year.  Somebody with a mixed bonds, stocks and cash portfolio would have seen cash levels go down.  There could be some selling just to rebalance. 

I think the only important thing in the next several days is what IWM does with the resistance line.  This is an important decision at an odd time of year to make such a decision.  With only three trading days left in the year we might not get the actual decision.  That reminds me.  You have just witnessed history being made.  This is the first year in the history of SPX it did not experience four down days in a row.  Will miracles never cease.  Pretty rough year for shorts.

I hope most of you got to enjoy some good family time yesterday.  The market and sector status pages have been updated.  Have a great weekend. 


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