Futures slipped from green to red this morning on rather light volume. The VIX is holding steady just above 20 and the put-to-call ratio is nearing oversold.
The market appears to be timing its December rally nearly perfectly. I expect tax-loss selling to wrap up this week as we get through the news cycle gauntlet. This morning we have the PPI (Producer Price Index) at 8:30 a.m. Eastern. And tomorrow the Fed meeting (FOMC) starts, it ends on Thursday with a message from Powell.
I’m not expecting any big surprises. Inflation is high and the Fed is tapering…
Markets continue to show signs of weakness and even Twitter sounds extra bearish today. Although I suspect the bears are likely losing steam.
Remember the “January effect” usually starts in mid-December. I’m watching for a bottom and turn this week.
Until then I’m holding my positions and buying more when price action warrants it. I’m super bullish!
*EFOI has support at $4
*PTPI has resistance at $4.50
*ESSC has support at $14
FHTX is on watch
SEAC is on watch
BLU has support at $7.50
LWLG has support at $18