Market Summary

As can be seen from the chart below we are above all the moving averages heading into the last week of the year, traditionally the time of the Santa Claus Rally or Christmas Rally for the last week of the year. Will we get a rally next week going in to year close? We will just have to wait and see. Click on chart to enlarge.

Of major interest is that as we approach the year end the small cap index has overtaken Gold in the best performer spot for the year up 23.26% beating golds 22.64%. For the week gasoline per the UGA was up the most up 5.24% followed by the oil ETF USO up 3.23%. All funds were up for the week with only EFA slightly in the red. Click on table to enlarge.

Market Summary

Elliott wave counting is a hobby of mine and I often look for waves to count when I look at a chart. The chart below of the daily S&P 500 shows a very long wave from the beginning of September to the beginning of November. In Elliott wave counting the 3rd wave is the longest wave of the five waves that make up a complete Elliott wave count. Click on chart to enlarge.

A better view of the complete wave count can be seen on the weekly S&P 500 chart below showing a low of 1010.91 to the end of wave 1 at 1129.24, wave 2 at 1039.70, wave 3 at 1227.08, wave 4 at 1173.00, and now we are in wave 5. Since markets move together there should be many other examples of 5th waves in markets. This is a time to tighten up your stops if you are long the market however the market looks very bullish. Click on chart to enlarge.

Gold and the small cap index continue to lead for the year. For the week the Dow, gas, and oil were up the most although it was a very flat week with nothing changing by over 1%. Click on table to enlarge.

Market Summary

The S&P 500 price chart formed a flag pattern as it came off the early November highs and moved sideways between the 20 and 50 day moving averages. With the recent breakout above the 20 day moving average(blue line)a new bullish thrust higher is taking place. Seasonally this is the best time of the year to be in the market as it has historically closed December higher for the month. Will that happen this year we will just have to wait and see. Click on chart to enlarge.

Gold and the small cap index continue to lead for the year. For the week the gasoline ETF UGA was up 8.62% followed by the oil ETF USO up 6.51%. Click on table to enlarge.