The market is closed tomorrow in observance of the Christmas holiday. This will be my last post of the week but I'll be back at my desk on December 26, 2010. To all my readers across the globe celebrating either Christmas or Hanuka, I wish you and your family a joyous holiday season.
Elliott Wave Analysis
There isn't much to discuss as trade surrounding the Christmas season is typically dull. Volume is null as most larger traders are in full holiday mode. The ES_F market is putting the finishing touches on the w.5 of the w.(2) advance.
Another sign of a top is the chart of the $SPX (above) that shows the divergence that is occurring as price makes new highs while momentum fails to confirm price. This signature, although not required, is often found with a topping market.
One thing that caught my eye was the most recent decline of COT Commercials positions (not
shown). Previously commercials were adding to their positions throughout this rally. Possibly this is just position squaring or is it a "tell" as the seasonal trend for equities ends in mid January. I'll be watching this data carefully.
Best of Trading
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