Last Friday all the market indices closed above their 50 day Moving Averages for the first time in several weeks signaling that the Bull regained the momentum in the closing sessions of last year and the opening sessions of this New Year, and they are now above what has been intermediate term resistance.
The market went up on low volume over the last three trading days, so we have to see what happens when the markets resume in earnest, and that should be the week of January 13. Lots of Bears have been out playing in the Snow, and when they come back to town they likely will take another swipe at the markets and send the S&P back to the line, the 20 DMA, 885, on a retest. If there is a decent recovery off of that retest, then more optimism will be in the air. A reminder, historically January is a quixotic (irrational and not predictable) market month, also it is the Year of the Ox (Bull) and the US will have it’s new president in office on January 21.
Stay tuned…
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