One more day till the 2011 books are closed up and for many professional money managers it does not come soon enough. Today’s rebound would have been much more convincing if volume had been more significant. Overall the market is simply hanging tough and it will most likely be until the New Year before any significant trend takes place. It was nice to see the market rebound from yesterday’s action, but without volume it doesn’t exude confidence in this market rallying.
A positive remains in the financials as they continue to find support and even real buyers at these levels. Now, I am not convinced banks are fundamentally sound, but I am not about to pretend I know what is going on. For now, their price action remains steady and support is coming into a few of these banks. Look for superior price support and you’ll find the banks willing to lead higher.
It would be foolish to really try and derive much else from this market at this time.
Have a safe and joyful New Year’s celebration!
