Tuesday, December 05, 2017
Today we had a one day reversal to the downside for the Dow. The most watched index dropped 109 points on average volume. The advance/declines were almost 2 to 1 to the downside. This might just turn the summation index lower. The overall market was lower as well but not as much as the Dow. However it does seem to me that the tone of the market is changing here. Tomorrow could be interesting. Perhaps this is finally the beginning of a sustained decline. We'll find out soon enough. If we get weak breadth tomorrow that will definitely turn the summation index around. Stay tuned. GE dropped almost 20 cents and the volume remains good. The order for the January calls remains open here for me. Gold dropped almost $10 today as the US dollar was a bit higher. The XAU fell 1 1/4, while GDX shed 1/4. Volume was average. It looks like another leg down for the gold shares. Mentally I'm doing OK but still somewhat involved with the hassle of the office move. We were and are still pretty high above the daily 50 day moving average for the S&P 500. A return to that level would not be a surprise. It comes in around 2575. Also extended above the 50 week moving average on a weekly basis as well. The potential negative RSI divergences on some of the major averages might finally come to fruition. We'll know in due time. But I do think that perhaps this time we will see some decline as it has happened in December before. If GE breaks through 17.50/17.60 I may have to rethink that potential trade. That appears to be the near term support. This may not be the best idea in the world either. Asia was mixed and Europe lower in yesterdays trade. We'll keep a close watch on tomorrow.
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