The US equity markets remain in consolidation as we head into the end of the year. The Dow futures triggered short on options expiration Friday last week and are coming into the consolidation support area of 10,200 with the 50 day moving average sitting at 10,153. The S&P futures also triggered a daily market strucure high short on Friday and have 50 day moving average support at 1086.50 with resistance at 1100.
Volume should begin to thin by midweek but sometimes trends can develop as the markets can be easily pushed around in these environments. It is likely, however, that the markets will hold off until the New Year rolls around before picking a direction. Historically, years that end in “0″ tend to see healthy corrections and many have ended the year lower. 2010 should be an interesting year.
Happy Holidays to All,