The Percentage of Nasdaq Stocks above the 50-day MA had one of the smallest changes for 2012. It's also in neutral territory, but rising, in line with a seasonal 'Santa Rally'
The Nasdaq is caught in a bit of trading range, with 3,100-3,196 likely to play as supply in the latter part of December. The light breadth action reflecting this indecision.
Small Caps remain the index of choice. The 'bear trap' is playing nicely for bulls. A break above 868 would be very positive for the index, and it could be a big performer in 2013.
The S&P is also coming off a 'bear trap', but it looks like there is a bit more potential in Small Caps to maximize its benefit. However, the S&P should see 1,474 broken as part of the Santa Rally and typical reaction to a 'bear trap'
Despite the quiet week, bulls can be pleased with how things finished last week, and can be optimistic for the coming week. Stops can go on a loss of 'bear trap' lows.
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