TRADING DP

[TREND1]

12/22 Ultra-Short-Term Indicators: No climactic readings. The VIX has started to decline a bit since popping above the upper Bollinger Band yesterday. This also is bearish for the short term.



Conclusion: Indicators are starting to get bearish, particularly the intermediate-term indicators. I think we will be fine tomorrow and probably through the new year. I would think that profit-taking would be stronger after the 1st for tax purposes. Before the end of the year we could see sellers divesting from losing positions for tax reasons as well, but I think the market will be most vulnerable in January. There is a long-time technical indicator known as the "January Barometer". It says that the close for January sets the tone for the year. If January prices are down, the rest of the year is supposed to end in the red as well.