Pretty rough week on the market with all indexes down 5.3% to 2.6% with the exception of Bonds which was up .6%. Like I stated last week, the S&P 500 looked a a little shaky considering that it created a pivot high which means that we should see a few days of down which is exactly what we got. The second thing that I stated is that we really needed a new pivot low to be created prior to $1158. Wednesday the 14th we hit a low for the day at $1209 and bounced. We didn’t bounce enough, and if you read the next two day carefully they were pretty weak to negative. So we slid sideways Thursday and Friday, but the actual breath of the market looking at advancers versus decliners, advancers won so we had positive breath. What we need to happen next week is to rally and close above $1225 and we will have a pivot low that was higher than the last and that would make a push for new uptrend leg.
Not to confuse this matter even further but the Small Cap actually did create a higher pivot low Friday which is awesome and a very good sign. The Nasdaq like the S&P500 sort of slid sideways but is close to creating a higher pivot low which would also be awesome. Now the bad, the European markets have been dragging down the entire world markets and they once again look horrible. They did level out Wednesday through Friday but there is so much damage there that I’m still afraid of what is next. What is the next new News bomb to come out of that region of the world.
So, here we are the last 2 trading weeks of 2011 and we are down 4 out 6 indexes and I’m down because of that one bad move in October, but not to bad. Will we get a small pop? Depends on the news, but if look at the charts, I would say we might get a little pop this week. I will not be making any changes yet and will ride this one out for a bit.
TSP Distribution: C-fund 50%, S-fund 50%
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