Home > Stock Market Strategy > WALL STREET CRAPS STOCK MARKET STRATEGY DECEMBER 26, 2016

WALL STREET CRAPS STOCK MARKET STRATEGY DECEMBER 26, 2016

December 26th, 2016

craps front coverSTOCK MARKET STRATEGY FOR DECEMBER 26, 2016: The stock market is still hovering near its all-time highs with one more closing high in the Dow Jones Industrial Average likely in the coming week to 10 days. But keep in mind that this time of the year can be very tricky and volatile. I see this week as the set up for the first week of the year which may be the final high for the intermediate term. Or we could decline into next week setting up a bottom during the first week of January with a rally into March. Be prepared for either kind of scenario.

Key underlying short-term market indicators show the following:

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THE BOTTOM LINE: The Fear/Greed Index is currently reading “Greed” which still makes me think that we have one more rally and revisit into the “Extreme Greed” area. With the internal breadth indicator reading “neutral,” I believe that this will be a week of non-action. On the other hand, anticipate the first week of the year to be eventful and possibly a short-term scare or longer term non-confirmation intermediate top. Either could happen in about 7-10 days.

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