Green Light

posted Dec 8, 2014, 1:08 PM by Katie Shook   [ updated Dec 8, 2014, 1:08 PM ]

Well, there’s a massive buy in the database today.  We’ve jumped from mid-30% long to over 50% long and all three major indexes (S&P500, DJIA, NASDAQ) now have buy signals.

What does this mean?

Well, either we’re in for the biggest head-fake we’ve seen by this market in some time, or there’s another bull-market leg unfolding.  Based on the declining cost of energy, it seems easier to make the case for the bulls.  The futures, in the short-term, seem to disagree.  But I won’t be surprised if the market quickly finds support above 2060 and resumes course.  The economic calendar is light this week with Thursday being the biggest news day.  Cue the wall of worry.  I continue to watch SPX 2100 as a key level before year end (and DJIA I suspect closes above 18,000 at year-end).

We’ve basically got two weeks left in the year to find about a 1% move.  Given that we’ve seen plenty of single-day moves that exceed this, my analysis is favoring a final push for the Santa Clause Rally.

Keep those fingers crossed!

ScreenHunter_04 Dec. 08 06.22

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