Short Days and Calm Rotations

The weakness this morning in the broad market is sure to get some trapped bears excited. After all, shorting this market during its ascent since Election Day has been a painful endeavor. And now that Thanksgiving has come and gone, officially kicking off holiday trading, a surprisingly bloody December would surely invigorate bears, with the short days and cold weather adding flavor to the selling. 

However, despite the initial red this morning, even the most steadfast bulls would have had to admit that the major average were rather extended to close out last week. Thus, some backing and filling or even shakeouts should come as a surprise to no one. 

Beyond that, bulls may feel emboldened to step in sooner rather than later. Specially, "FANG" names which had been lagging the rally of late, like FB and GOOGL, are notably outperforming this morning. 

GOOGL, below on the daily timeframe, is breaching its downtrend line dating back a full month now. If bulls can sustain a move over $800 we may see some rotation back into those FANG leaders just in time for Christmas. 

Overall, I am letting this market consolidation play out, looking for entries in some specific names we are stalking for Members. With shorter days and calm rotations, bears are going to have to do better than that this prevent dip-buyers from looking for a new round of buys.