IMPORTANT UPDATE ON THE BROAD STOCK MARKET (8:30 pm EST)
The DOW and S&P 500 both made new all-time highs today, but the NASDAQ continued to edge down as it remained below it's all-time high of 16,212 (from Nov. 22). All three indices fell dramatically at the end of the day and closed near the bottom of their respective day ranges. This is a strong bearish signal. It looks like our "Santa Claus" rally may not make it to the new year. Of course, we were expecting a peak sometime this week as our current reversal zone ends tomorrow. This looks like a good time to sell this market short for some sort of correction (and maybe the start of a big one). Unless this market gaps down severely tomorrow morning, let's look to sell it short early tomorrow. If it starts to rally again, we'll watch to see if the NASDAQ can make a new all-time high (not likely). If it can't, we will also be good to go for a short-sell. Bottom line here: Be prepared to possibly enter a short position in the broad stock market sometime tomorrow.
The DOW and S&P 500 both made new all-time highs today, but the NASDAQ continued to edge down as it remained below it's all-time high of 16,212 (from Nov. 22). All three indices fell dramatically at the end of the day and closed near the bottom of their respective day ranges. This is a strong bearish signal. It looks like our "Santa Claus" rally may not make it to the new year. Of course, we were expecting a peak sometime this week as our current reversal zone ends tomorrow. This looks like a good time to sell this market short for some sort of correction (and maybe the start of a big one). Unless this market gaps down severely tomorrow morning, let's look to sell it short early tomorrow. If it starts to rally again, we'll watch to see if the NASDAQ can make a new all-time high (not likely). If it can't, we will also be good to go for a short-sell. Bottom line here: Be prepared to possibly enter a short position in the broad stock market sometime tomorrow.
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