Not much to report today. The two previous posts sum up my thoughts as to where I think we are headed over the short-term. Unlike the last few months I think the seasonal tendencies will live up to its historical billing and reign supreme until the New Year passes. The Nasdaq 100 (QQQQ) is slowly creeping into an oversold state and I think once it does so the year-end rally will commence. However, I think the bears will have a surprise or two for the market in the near future, so, learn from past experience and don't be too greedy.
RSI Wilder (5) for December 20, 2006
-
SPY - 54.8 (neutral)
-
IWM - 34.1 (neutral)
-
QQQQ - 34.8 (neutral)
-
DIA - 80.3 (very overbought)
Andrew Crowder, Chief Investment Strategist, www.crowderinvestments.com