Just as there was a strong outside day to the upside ("bullish engulfing") mid November, we have the potential for the opposite today ("bearish engulfing"). There are simply days that completely engulf the previous day's range and closes above or below the previous day's range. They can be significant short/intermediate term turning points. On top of that today's happened after the S&P 500 gapped up to the 61.8% retracement of the entire two month correction. Something to at least be aware of, with an hour to go – that persistent futures buyer could of course come up here in the last hour and make it a moot point. Friday's low was 1411.63…
EDIT 3:03 PM – just as I post that, within 10 minutes there is news of a GOP counteroffer to fiscal cliff and S&P spikes 4 points.
EDIT 3:11 PM – and just like that that gain is gone, and we see new lows on the indexes. Continues to be a very annoying headline driven tape.
Any securities mentioned on this page are not held by the author in his personal portfolio.