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Early in the week it looked like the S&P 500 might retest its previous low from
3 weeks ago. However, as mentioned before, the Christmas Week affect
kicked in which allowed a sharp rally to follow.
The S&P 500 was able to remain above the bottom of its upward channel and I'm
sure they would like to see it rally back to the top of the channel to close out
the year.
Meanwhile, the Russell 2000 found support at the lower end of its previous
consolidation pattern, after having a false breakout a few weeks ago. The
overall chart doesn't look bullish too me so we shall see what transpires in the
early part of next year.
Finally, the percent of stocks above their 200 Day MA remains at a low level
(green line). It's still remarkable the S&P 500 is at an all time high
with the % of stocks above their 200 Day MA barely above 40%. If the % of
stocks above their 200 Day MA continue to show weakness the S&P 500 will
eventually play catch up at some point.
Amateur Investors
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