Can holiday rally continue next week?
by
, 11-28-2008 at 01:33 PM (1812 Views)
Stocks continue to climb as the C and S-funds put up some huge numbers again on Wednesday as the pre-holiday seasonality strength did not disappoint. Will the post-Thanksgiving Day seasonal strength be able to penetrate resistance?
Seasonality says today should be a good one as well, but the S&P 500 has now moved up to the top of the descending bear trend line, so it will be interesting to see if this rally can continue. Today's volume will be very light (see the 2007 post T-Day volume below) and that should allow either the bulls or the bears to whip things around - depending on who has the ball. It's usually the bulls during holiday trading but gain, resistance is upon us.
Chart provided courtesy of www.decisionpoint.com
I believe this rally is setting us up for another serious decline, possibly as soon as next week, but it will depend on how the crowd responds to the resistance at hand. If the herd shrugs off the technical roadblock, perhaps the rally will continue.
Can you believe Monday will be December already?
Chart provided courtesy of www.sentimentrader.com
I'll cut this short today as I assume most people are taking the day off and probably out shopping rather than surfing the net. Just a reminder that the market closes at 1:00 PM ET today.
Have a great weekend and we'll see you here next week.