The markets were unable to hold their gains today and settled back at the low end of their range.
This is not a good sign given the recent rejections at the resistance highs. However, I believe we are already seeing the signs of "fear of the Fed" with the meeting next Tuesday. The Fed is not about to make any changes but traders are afraid to make any big bets just in case.
Oil prices continue to decline even as the dollar also eases off its highs. The excess inventories and constant stories about lack of demand are pressuring prices. When oil was over $80 back in early November I wrote that I expected to see $70 before $85 and it appears that will come to pass. Crude prices fell to $73.70 intraday.
The market is not giving us anything to trade here. We either need a serious dip to buy or a positive change in sentiment. I fear we are going to test support again at 10250, 1085, 2140.
I am going to pass on any new entries again tonight until we see what the market is going to do. There is no reason to trade just to be trading.
If you have not taken advantage of the Option Investor End of Year Renewal Special here is the link to the offer. This is the cheapest rate we offer for the entire year. Nobody can get the core newsletters at a better rate.
Click here for the 2009 Renewal Special Details