Daily update 12/21 Technically Speaking: Is It 1999? 2007? Or Both?

More rotation.  It looks like the broad market upside from tax cuts has been priced in.  Investors are  now buying and selling individual stocks that are expected to be winners and losers from the bill.  I would guess that would be finished by tomorrow.  I can't imagine money managers wanting to hang around next week to do that stuff.

SPX was at a new closing high for a while today.  However, the sellers took over in the afternoon and pushed it back down.  Breadth was +57%.  New highs were up a bit to 187.  New lows were also up a bit to 42.  Despite testing above Monday's exhaustion gap low it failed to stay there and we closed back in the gap.  I guess people are not really in the mood to chase this very extended market at the moment.  They are probably exhausted from buying all those stocks in anticipation of tax cuts getting passed!

The futures climbed above the upper channel line, but failed to stay there.  They still have not contacted the 20 SMA, but that seems more likely now.  The lower channel line is still a possibility.

Some sectors were strong today (financials and oils) and some were weak (semis and utilities).  The market is in a mad dash to get positioned for next year.  The net result has been only minor changes in the major indexes.  The market is extremely overbought, but there is little interest in selling.  In other words boring.  I don't know what else to say.

Interesting look at some historical comparisons.  Technically Speaking: Is It 1999? 2007? Or Both?

Bob