____________
MARKET WRAP UP 12/15/10
The S&P 500 printed its first red daily candle in over a week, as the benchmark finished down 0.51% to 1235. While breadth and volume were far from intimidating to bulls, there was some distinct weakness in some of the classic “hot money” names, such as $BIDU and $LVS. The 1234-1235 area should provide the first area of firm support, dating back to last week, and we saw that hold today. Beyond that, I am looking for the general area of 1220-1230 to give the bulls some sturdy defense.
As tempting as it is to look for a major inflection point, the fact is that the market can only continue to dribble higher on a daily basis for so long without taking a rest, particularly when it is already extended. The overall uptrend remains firmly intact, and the bears are going to have to accomplish a whole heck of a lot more then what we saw today before the idea of swing shorting should even be entertained. Moreover, the key areas of the market that have given the best “tells” over the past six months, the small caps and trannies, continue to develop bullish charts.
Hence, the correct strategy is to patiently wait for a new round of setups to emerge. At the same time, writing off the rest of 2010 as nothing to wait around for is not something that I am ready to do, just yet.
____________
____________
____________
____________
____________
____________
For me, on the RUT and MID, another day of this gets me wondering. I think we need a strong day tomorrow to confirm the bullish case.
Bought some GNK.
Go KR go!