By Investor’s Yak
There are many variables occurring in the market this December 2015. FED meeting, Window Dressing, even an End of Year rally sometimes occur. As of Friday the December 11, the market finished the week with a deep pullback on heavy volume. Major indices will probably test their August 24 low price. If markets break below their low price on heavy volume, they will setup another new low price. However, if prices bounce off the August lows, a careful trader might make some short term advances.
It might be prudent to relax this Christmas, take your profits, stay in cash, and take a break until the New Year arrives. Many investors are waiting to hear from the FED during their December 15-16 meeting. It’s been a difficult to judge year. Each FED meeting has resulted in hints of increasing interest rates followed by procrastinating statements back peddling out of their hint. Each time a member of the FED speaks, the market reacts.
Future market direction will be determined by one of the following:
1 Bullish – New price gains above the 200 DMA and breaking out of TRs
2 Neutral – Trading range development between recent highs and prior lows
3 Bearish – A pullback busting below prior August 24, 2015 price lows
Event calendar affecting markets in November
15-16 December – FED meeting.
29-31 December – End of month window dressing; could extend into December.
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