SPX tried to penetrate 50 day moving average and was rejected. That is normal, it will make another attempt. The gap open in early session didn’t have enough commitment from the bulls. The move faded almost immediately. From there on it was all downhill towards the close with lower lows and lower highs.
Most of the leading stocks are already at or near their 50 day lines. These stocks are trying to push through this heavy resistance. Either you get a rally or something to get that going. The volumes were low and that is not how this barrier is usually taken out. They need a push and get some good catalyst. AAPL, GOOG are both near their resistance here at 705 and 600 respectively.
We are in a confirmed uptrend as per IBD’s bench mark. Unless something changes the tape will remain bullish. What is not helping the financial markets is the rhetoric coming out of Washington about Fiscal Cliff. Fiscal Cliff is not an end all and ultimate destruction, but it’s a taboo subject on the Wall street. Just don’t say it, do’t do it and I don’t want to hear about it that is the message street seems to be sending.
It makes everyone nervous and unsettled and the parade of politicians is contributing to it. It almost reminds me of the stimulus package deal back in 2008 when Congress rejected it twice. The same kind of vibes are filling the airwaves these days. Not healthy for the financial markets which provide security to millions of people worldwide.
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