It is currently Sunday evening December 27th as I write this post.
I thought I would comment on the pre-market moves in the S&P 500 futures markets. Today, when we opened up for trading, the market sold off 4.50 S&P points. Currently at 10 p.m. West Coast time, the market has rallied 7 S&P points off that low and currently at 1125 on the March contract futures. It is too soon to say, but someone is bidding this market up for a strong open come Monday morning. Earlier today I posted a U-Tube video showing the weekly, daily and 120 minute chart of the S&P 500, NASDAQ and Dow Jones Industrials. I will post that video here below, so you can try to gain some insight into what is happening.
Often times we think the market will do one thing or another, but what it actually does is what counts. We have remained in a uptrend since the March 6th S&P 500 lows at 666. Until something changes that, you need to continue to ride the price action wave higher or step aside.
The NASDAQ has broken out very clearly and with some conviction, which is nice to see. The Dow Industrials seems to be the laggard of the bunch. Monday will be very interesting since there are very few institutional traders to propel the market higher with any conviction. I believe it very well may close higher in Monday’s session December 28, but the thing to watch is the market volume. The level of market participation is very important for a sustainable rally.
The market may be bid up on very thin trading volume and susceptible to sharp corrections come after the New Year. There is an enormous amount of profit built-in at these prices and it never really becomes a profit unless you sell it. I think this just may be on the minds of many large institutional players. In addition postponing the taxes on those gains will be put off another year after January 1st 2010.
Tax’s are really never a good reason to hold onto a position or not. It should be separate, but I can not help but think it may have an effect this time around.
Good Trading to all !
Related posts:
Tags: market insight
Please log into the site.