Stocks snapped a two-day losing streak in today’s trading session. However, before getting hopes too high, this does not look like the beginning of a year-end Santa Claus rally, unless you are long Gold, which posted signs of a breakout, or Real Estate’s Home Construction Builders.
Top performance among sectors was found in Consumer Staples (XLP +1.13%), Financials (XLF +0.99%), Information Technology (VGT +0.98%) and Telecom (IYZ +0.92%). Sectors significantly lagging the market were Energy (XLE +0.10%) and Utilities (XLU -0.07%).
There were no major economic data reports today.
*Trends: ST = short-term; MT = Intermediate-term; LT = long-term
Today’s market breadth was overwhelmingly positive but unfortunately most of the advancing issues traded on lower than average volume. Translated into plain English: the market internals are weak and the rally is not to be trusted. Market momentum continues to be bearish as key moving averages have been violated, especially among some of the heavier weighted market cap components of the SP-500. Even more important is the fact that the trend remains downward.
The bear trap which I predicted after last week’s rally still has a hold on many bulls. Be careful…
Hillbent on the Market Direction…
|Daily Chart Technical Analysis|
|New 5-day highs||35||New 5-day lows||128|
|New 52-week highs||2||New 52-week lows||19|
|Bullish reversals||161||Bearish reversals||16|
|% > 20 M.A.||% > 50 M.A.||% > 100 M.A.||% > 200 M.A.|
|24% ↑||31% ↑
|↑ = positive momentum; ↓ = negative momentum; and ↔ = neutral momentum|
Volume Radar Alerts
- Vol % = volume percentage greater than average volume
- SIR = short interest ratio or days to cover
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