Santa Has Left Town With the Easy Money
After a pretty good seven-day pattern in which the Santa Rally exceeded the average of about 1 ½%, with the S&P 500 (SPX) up 23 points or about 1.9% over that time frame, it was no big surprise the market was set up for a bit of a pullback at the opening. So this morning, there were down openings across the board -- at least in that part of the board where gaps appear.
One place where the gap wasn't visible was in the SPX, though yesterday's close of 1277.30 gave us a pretty good idea of where a gap would be if it showed up. Now, after the early pullback that would-be gap has already been filled as the SPX has turned positive for the session. Though still well shy of its highs from Tuesday when the SPX stalled just pennies shy of its Halloween Gap at the 1285.08 level. The high on Tuesday of 1284.62 was just fractionally shy of that gap and now, as of this morning's lows, the SPX has pulled back almost 20 points from Tuesday's highs. Not bad, especially if you were selling into the Halloween gap in anticipation of a pullback, as I suggested in my column on Tuesday. The top of the Halloween Gap at the 1285 level remains resistance for now. But if that level is exceeded by more than a point or 2, especially on a closing basis, it becomes support....652 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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