Uncategorized

A lot of volatile swings to start the new trading year. Correction risk continues to hang over the stock market for the month of January.

In 6 out of the last 7 trading days, we’ve had a highly volatile trading days. With the markets having largely retested their highs — except of the Dow — we could see a correction and roll at any moment. It remains to be seen if we get follow through next week.

The market rebound has extended to our high expected range. But now risk has returned. Different risk factors point in different directions at this point. We discuss in the Daily Briefing.

Based on near-term indicators, the market should see continued upside early the week. Santa rally could also contribute to the the markets higher as we go into year end. Chances are we get more selling right after that.

Markets reach extremely oversold territory and set to see a substantial bounce as early as tomorrow Thursday Dec 19.

NASDAQ-100 & large cap tech stocks are all pointing toward a short-term pull-back on the horizon. But the S&P 500 and Dow say differently. The indices could diverge in the net few weeks.

Updated the current outlook to reflect our short, intermediate and long-term forecast on the market. As we noted on Friday, we expect the market to pull back near-term. Intermediate-term, we’re not far from seeing a correction. It’ll likely happen by mid-January.

Indecision in the hourly chart on the SPY, QQQ and Dow all point to a second leg lower in the broad market. Trend and other data says otherwise. We’ll discuss our outlook and how we plan to trade it.