To continue briefly with our last post. The daily SPY had a rally attempt that failed. It failed to make a new high for the move and it failed to even edge the high of Thursday. Closing 0.1 points above the low of the day, for the second day in a row, there was no buying interest. One can make Christmas excuses for the market, but in my experience the charts speak for themselves, and unless something changes like very significant demand entering the market, the top of this rally is in. The rally that began 11/21/08 ended 12/08. The high was tested 12/17 and failed to generate any buying interest. We now have three days in a row with either no buying interest or supply dominant. Closes were at or near their lows three days in a row emphasizing weakness.
Prices have moved to an apex in this trading range and a break to support at 820 could begin shortly.
Just a few notes:
1) The various gold indexes are as strong as T-Bills or Long Term Treasuries on Decisionpoint.com. This is very telling.
2) The various financial indexes and ETFs continue to be very weak
3) Citigroup is in trouble again and alone of the major financial stocks is hugging the lows of its range. The next big problem could be here again.
