Merry Christmas & Happy New Year!
As expected, volume decreased over the last 4 sessions with most investors on vacation. We can see on most of the major indexes that the Smart Money made their final trades for the year on the 18th as the volume was enormous.
Over this light trading, the markets drifted higher and even broke out of the top of the trading channel. Most surprising for me is that the Nasdaq moved an astounding3.35% higher. Also, the Russell 2000 advanced 3.85%.
Just as it looked as though the Smart Money wouldn’t show their faces before the holidays, Friday’s volume soared signaling a large batch of orders taking place.
From the initial analysis, the S&P 500, Nasdaq, and Russell 2000 all had bullish price action, closing near or at the highs for the day, and the Dow 30 and NYSE showed signs of supply, closing off highs, which could ultimately be bearish.
As time continues to fly by, now almost halfway through December, the markets have shown us little as to where they want to go.
One thing that sticks out to me is that in the last 24 days, we’ve only seen the market close on/near the high for 7 days. With a stat like that, it is easy to understand why the markets haven’t pushed higher into fresh, new ground.
