2009 In The Can

On a day like today, with a well defined range and just about everyone gone for the New Year, what could possibly go wrong? Whoever it was, somebody big decide that the last half hour was time to get out in a big way. The drop was breathtaking, and happened so quickly I just sat and admired it. It;s been so long since we've seen a big volume bailout at the last minute, it was truly a sight to behold. 1121 fell rather handily, putting us in a new range as the year end, and putting a somewhat bearish tone to start the new year with. Will it make a difference? We have 3 days to forget about it, so it probably won't. But somebody seems to be anticipating a January sell off.

Despite the last half hour, this week's close was the second highest of the year. MACD continues to bend but not break, and unbelievably stochastics still point upward.

The Dow industrials show more signs of weakening than the SPX, and getting higher here is going to be much more of a struggle. On the bright side, the CNBC anchors may get another chance to wear their DOW 10000 hats.

The Nasdaq is completely confused here, with MACD whipsawing and stochastics not sure which way to go. It has retraced last year's crash and is now in the 2008 price congestion zone.

The Russell 2000 may have an ambigous MACD, but the stochastics leave little doubt that the upside momentum is stronger here. This has a good chance of retracing the crash, with a target around 675.

The poor Transports, after spending almost 2 months leading the market up, must feel like they've been kicked in the teeth. The indicators are reversing yet again, but it is still above the 10 week moving average, and the bears are kust blowing smoke unless they can break it.

2009 has been an interesting year, and a disappointing one for me. Had I followed the O'Neil system religiously, I would have made a hell of a lot more money than I did. 2010 may give us another chance at it.

I will have the new highs update shortly.