Stock Market Viewpoint

Stock Market Viewpoint
Reading the Tea Leaves...

Tuesday, November 20, 2012

The Bulls, Day 2

Stock Market Technical Analysis Blog

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Today in the markets we had the classic consolidation day, always a necessary counterpart to follow such an explosive day as Monday.  While today's volume was the lowest of the past five days on the SPY, a stair stepping down volume is the norm for Thanksgiving week.  The stock market had a bit of a drop during Bernanke's speech as he emphasized that if we go over the fiscal cliff there is nothing the Fed can do to help the economy in that situation, insisting that Washington must tend to business on this.  After the speech into the final hour, the intraday technicals on the SPY and Nasdaq and AAPL recovered completely and closed bullish on the intraday technicals.

I would rather this rally have taken place next week so that the true volume participation would have been visible to all but after six weeks of synchronized construction on all the indexes we had total completion Friday morning so the time was here and the bulls took off and ran with it from the first tick yesterday morning.  Wednesday and Friday's activity will be holiday low volume skewed so much that we really can't start scrutinizing the rally again until Monday.  Nonetheless, the ultralight volume days favor upside movement on stocks and downside movement on VIX.


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