Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
Markets seem weaker than the indexes today as a lot of the well known stocks are being hit, but the index action is relatively benign. S&P 500 level 1404 has been a key level all year both in rallies and corrections and once more was a key level today as that is the level the index fell to multiple times and bounced off of. Yesterday’s “outside day” on the S&P 500 did not provide very much follow through at all.
We remain in a white noise sort of area and the action is a bit jumbled day to day with different sectors getting some of the hot action but not much sustaining after a few weeks of rallying. One thing that is happening is a lot of the “garbage” stocks are running – the highly shorted, “theme” stocks. This is very typical for December action. If the consolidation continues like this it would be a victory for the bulls but some key levels lie above and below.
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