As with the previous post => FISCAL CLIFF PANIC we stated that the last few days have been classic holiday reversals, and EXTREMELY LOW volume
Have a look at the nasdaq daily chart.
As you can see we have sold off since the start of the holidays. We sold off on very thin volume, meaning right now the smart money is gone from the market.
Also the stochastics are confirming that we are now very oversold on the market and a bounce is due soon.
It seems we are still in holiday reversal time period and with the fiscal cliff talks that is also putting added pressure on the markets. The breadth and other market indicators are skeptical that these moves will hold for long, and there is a considerable sized bounce coming very soon.
Charts are just saying this is a dip before a larger move higher. If you are a bear, do not fall in love with the downside, doing that in holiday reveral time periods can sometimes be very dangerous.
Enjoy you weekend and we will come back next week and monitor things closely.
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