Mr. Market spread absolutely no Holiday Cheer today as the major averages sank lower, even picking up steam into the close. Only the defensive sectors including drugs and healthcare finished the day in the green. Especially hard hit were small caps, retailers and semiconductors. Breadth was over 2 – 1 negative and intra day reversals in momo favorites such as Google (GOOG) were down right ugly.

If you want to find a positive, the light volume helps but that is to be expected during a Holiday week and doesn’t make the point declines any easier to bear.  While it is getting harder, we continue to remain optimistic thinking we still may see a bounce into the year-end. We suspect today’s action has led to many more traders throwing in the towel and booking their gains before the Holidays, which would bode well for a snap catching many off guard.  There is little doubt that investors are feeling quite negative and glum and that may be what will eventual set us up again.

The technical picture is deteriorating and that is worrisome but we are holding on to a glimmer of hope that Santa Claus may still deliver a gift for good little bulls and girls.

Have a good evening.

RevShark.