A Taxing Situation December 16, 2017
Posted by Tom in Thoughts.Tags: stock market commentary, technical analysis, Wyckoff
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12-15-2017 – No doubt about it . . . the stock market likes money and when they’re pretty sure that more is coming their way . . they get happy and drive prices higher. Volume was dropping off (until Friday’s options expiration), so we’ll have to wait until next week to see the tax approval drama prove out and see if the market reacts with higher prices on higher volume.
I do want to see volume confirm price (ease of movement= price and effort = volume) in order not to get concerned about a possible Up Thrust After Distribution structure. Likely, that won’t happen, at least not yet anyway.
The 6668 level remains my support level. One thing concerns me is the Money Flow indicator; it’s falling. Other than that, all “systems” remain bullish and I remain (nearly) fully invested. Volume will typically drop off between Christmas and New Years and attentions divert to the holidays. We may have to wait until the new year (and new tax basis ?) to see just how strong the underlying market really is. But for the time being . . . “no worries”.
Here’s a table of short term sector strength –
Wishing you & your family a very Merry Christmas. ………… Tom ……….
Price chart by MetaStock; pie chart & table by http://www.HighGrowthStock.com. Used with permission.
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