The balancing act in the stock market continues. Key indicators suggest whether the bulls or bears will win out as 2012 comes to a close.
Market and major indexes succumbed to marginal profit taking Wednesday, while overall market volume sank 5.6% vs. Tuesday’s levels.
Major indexes posted strong gains Monday, but none rallied to new short-term highs above its Dec. 12 intraday peak.
Two important events could have a profound effect on the mood of the financial markets this week.
By any price measure, the bull trend since 2009 has been powerful. However, volume analysis leaves a bit to be desired.
A Christmas stock market rally may seek to build from lower levels. If that's the case, those levels will have to be established Monday or Tuesday.
Once intraday and new short-term highs were reached early Wednesday afternoon, major stock indexes sold sharply lower.
Major indexes made small gains on Monday, with both the Dow Jones Industrials and Value Line index rallying to new short-term highs.
The current trend in the stock market is reaching a key point of decision: Will further price action resolve itself positively or negatively?
Marginal gains were evident in major indexes Thursday, but market volume shrank by just over 10%.