Upward momentum in the major market averages appears to be waning, especially in the NASDAQ and the Russell 2000, which had become short-term overbought. Bigger picture the trend is still up. Yet with two days left for 2009 we could see stocks drifting quietly into the new year as investors avoid rocking the boat.
We are already heavily weighted toward bullish candidates and I don't see anything that screams "buy me" right now. No new plays tonight. Traders will want to double check their stop loss placement just in case we see some profit taking in the next few days.
FYI: We have less than three weeks to January option expiration.