He Knows When You've Been Bottom-Fishing

In the midst of the seasonal "Santa Claus Rally," typically extending into the first week or so of the new year, stocks are giving back some of last week's gains. We are still keying off 2045 on the S&P 500 Index as a basic line in the sand, though I suspect we will not get more concrete answers until next calendar year. 

Meanwhile, the lagging small caps could easily be breaking a daily chart bear flag lower, as the $115 level on the IWM ETF, off of which Members have been keying, acted as firm resistance. 

A few names like ALKS AMZN are impressively green here. But for the most part the market has a bit of a Christmas week rally hangover. 

Also note the pronounced weakness in controversial healthcare player VRX, below on the daily chart. The stock remains in a clear downtrend with a confirmed top after a multi-year advance, and bottom-fishers should still heed extreme caution for anything more than a quick flip on the long side.

We are keeping in eye on HZNP MNK this morning, too, to see if they follow suit, also damaged charts in their own right.