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Monday, December 22, 2008

No Santa, No Volume

Light volume was what was expected, and light volume is what we got. However, the magnitude of the selloff was getting very disturbing. A last half hour rally saved things. Technically we are still in a rally, but it is on danger of failure. MACD is giving a bit of a hint pof rolling over, and RSI dropped below 50 again. Let's hope Santa isn't bringing us a lump of coal.

The Nasdaq never could stay above the 50dma. The young trend is broken. Despite the weakness today, the Nasdaq is still outperfotming the SPX since November 20, which means we still have a decent chance at a rally.

The Russell 2000 was also very weak, but the last half hour rally was a lot more dramatic here, and it pushed the close above the trend.

This is the Nasdaq new highs. Since the last spike in September, this has barely budged. I liiked briefly at the past few years, and saw nothing like this. It shows, if nothing else, just how damaged the market has become.

NYSE new highs, much the same story. If I get a chance I will see if I can get past data and see if I can find any time in history that looks like this.

I missed DJCO on the earnings sheet reporting today but it got exactly zero volume, so I don't think anyone was impressed.

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