That the market is consolidating this week should not come as a surprise to anyone, given the surge higher before and after Thanksgiving. To those of the ursine mind, though, a relatively benign consolidation is not what they expected. While big-time winners in recent weeks like CLSN and RIMM suffer aggressive profit-taking today, the rest of the market is not. Small caps are outperforming again, showing good relative strength, and the lion’s share of last week’s gains remain intact. I am largely welcoming this mild consolidation, provided it does not overstay its welcome.
Keep an eye on the financials here, as the XLF ETF is sandwiched between its 20 and 50 day moving averages, in a relatively compressed state. I am looking to see which side wins out for short-term direction of the overall tape.
http://www.youtube.com/watch?v=NZ9dpqXUDSI
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Bobby Darin- nice!
He deserves more credit.