Institutions took an early departure from the market as volume ended lower across the board. Laggards pushed the market higher, but given the light volume day suggests bottom feeders were looking for bargains. Without volume, it is hard to put too much weight on laggards leading the market higher today. On the economic front GDP, the final reading of 2011 came in lower than expected at 1.8%. Not the type of growth you would like to see during a shaky recovery. Despite the negative economic news the market was able to push higher.
Tomorrow will more than likely sport very light volume again, but anything is possible. It would be very nice to get a big rally with volume well above average to show support for this market. On the positive side a few banks (if you read last night’s commentary you will know which two) showed strength. We are still waiting on semi-conductors to gain some traction. If you track SMH you’ll notice the ETF continues to be in a holding pattern. A surge upward on big volume would certainly be a positive signal semi-conductors are ready to run.
Keep your eye on the prize here!
Enjoy the Christmas weekend and the day off from the market this coming Monday!
