Leftovers

Much like the leftovers from Thanksgiving dinner, this market is seeing the leftovers of a correction still playing out even during what is typically a bullish holiday week.

Indeed, the action continues to be lethargic on many levels, with crude oil's plunge this morning not doing bulls any favors, either. Moreover, we have an early close today at 1pm EST, which makes it tough to feel out the trading session for any type of ebb-and-flow.

Perhaps the best argument for a rally at this point is that sentiment is turning more somber by the day. And while it is not exactly fear and panic out there, it does seem as though plenty a trader has become demoralized by this market action for nearly two months now. Until that scenario develops, though, staying cash-heavy is my priority which we track special situations for Members in segments of the market like natural gas. 

In addition, with oil diving during the busy holiday season we would be remiss not to revisit the bullish airline thesis we previously observed. 

At a minimum, some better action in the broad market would be amenable to taking on fresh swing longs into the weekend, since the S&P 500 Index weekly chart, below, is a good example of just how ugly things are out there--Note the bear flag in danger of sharply breaking much lower from here, which again compels me to stay in cash. 

As I write this, I see bulls are trying to stem the tide via buying small caps. If that bounce fails today, I would have a hard time swinging virtually any trading longs into the weekend.

So let's see if bulls can gobble up the correction leftovers today so we can move on to a better holiday tape next week.