December 12, 2014

 

Market Summary

 

This week the market finally came under selling pressure as all the major indexes are down over 3% for the week. Prior to this week the market had been trading quietly in a relatively tight pattern however, the market breath (Advance/decline) has been showing weakness across many sectors and a rolling pullback was underway even though the Dow and SP were achieving record highs. The drop has been largely due to the continued intense selling in crude oil, some disappointing economic numbers, and few stocks and sectors have been making much progress in recent weeks. Overall it does look like the heavy selling this week is a sign of distribution and the market is likely to trade in a tight range for the rest of the year and should find support at its 50 day moving average around 2,000 on the S&P 500. As the holiday approaches, trading volume is likely to remain light and any major move in the market in either direction would be surprising. Thus a quiet period is likely to persist for a few weeks until 2015.

 

Next week I will post my market recap for 2014 and some thoughts about 2015.

 

All for now.