US stock indices fell back to key support and trendlines today in a relatively light volume controlled selloff.
The cynical side of me thinks that they are ‘taking out the trash’ and getting squared up for the serious window dressing and tape painting with which to celebrate their bonuses and the end of year.
They may be also enticing bears to come back in with short positions in order to provide some fuel for their New Year’s party.
We’ll obviously know more when we see how things go the rest of this week, and how intense the drumbeat of ‘Fed taper’ starts to become.
Have a pleasant evening.
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