Despite what looked to be signs of a potential bounce, Mr. Market gave traders zero holiday cheer today and continued to dish out a little more pain. By around 2:30 ET this afternoon it became clear that the bulls didn't have the juice to get things moving so they started liquidating the longs that they had hoped to sell into a window dressing rally. The pressure stayed on during the final hour and we went out near the lows of the day.

Breadth remained positive throughout the day but dealt false hope and turned negative into the close. Market leadership came from Gold which does not give us encouragement going forward. Furthermore, with a lower high and now a lower low, the S&P 500 is in a confirmed short term down trend and must make up some good ground before becoming attractive again.

We are disappointed that seasonality has not given us a better trading environment but suspect the fear of an inverted yield curve in addition to the terrible memories of last January are trumping the eggnog and holiday spirit. As the negativity builds and talk of a terrible January starts to waft through the air, the potential for an upbeat January is increasing. For now, we have to hunker down, raise some capital and wait things out. Mr. Market will be back for some partying, but it will have to wait until next year. 

Have a good evening

RevShark