Quiet Day....Holiday Week

And the market needed that type of day. It's sitting near overbought on the short-term charts for quite some time now, and it would be really nice if the market oscillators were allowed to unwind some, which would allow for more energy to try higher over time. No major selling today, but we did get a bit of unwinding without heavy price reduction, and that's more on the side of bullish action. As always, hesitation on the oscillators would not be great if price was falling, but fortunately that's not the case. The short-term charts kept getting up to the low 70's on RSI, and would only fall a little bit before hitting 70 again. After several moves of this nature the market finally gave it up a bit today. It's about time. It's healthy. It's necessary. We're finally seeing some sub-60 RSI's on the sixty-minute charts. It feels as if the market can breathe again. Constantly being at around 70 RSI gets old. Volume was very light today, thus, no sign whatsoever of distribution. As always there were many stocks that took big hits. The market is no longer safe like it was one to two years ago. Every day there are bad plays with today no exception. The key is the market itself behaved well. Today was actually a healthy day for the markets. Selling can be, and today was, a good thing. Holiday weeks are often early exit weeks for many big traders, thus, low volume rules the day. When volume is too low there are some of the worst sell offs. There doesn't need to be heavy volume to sell. If the low volume is heavily weighted on the sell side, meaning no bids to support a stock, then things can deteriorate very quickly. The same is true in reverse if a stock is going up. Holiday weeks, for the most part, are positive for the indexes. But, again, not necessarily for individual stocks. The usual rules always apply. Best to buy weakness and not strength. Don't get caught up in the belief that everything moves higher just because holiday time is usually associated with higher markets. There are plenty of times when holiday seasons rip the market apart. The market can fool the masses. Just be careful as always. Never let your guard down because it's a holiday week. In the end it's about 2020 for the bears, and 2134, but first 2116 for the bulls. All trading in between 2020 and 2134 is purely noise. If we can break above 2134, then we're off to the races in to massive, negative divergences. If we fall below 2020, we are likely headed towards gap 1954/1951. The market could go either way, but my bias is still for a new high over time. With no signs of anything bearish on the selling it's likely we will try higher, once again, over time. Nothing is guaranteed, however. If you buy use the best rules of buying weakness. The opposite, of course, if you need to short. Some exposure is fine. Too much is not. *****NOTE****: Wednesday is pre-turkey day, thus, no newsletter unless something urgent occurs. I'll do a nice, little, tidy, late-day update. The same holds true for the half day on Friday.