It’s the trading day of the year, and there’s a better than 80% chance the Federal Reserve will maintain its current benchmark interest rate at its January meeting — I don’t think that will happen till at least May.
Volatility and volume are both super low right now, and we typically rally until Jan. 4 before it backs off a bit.
We’re also getting a bit of a tailwind from Europe, but we’re seeing a lot of random trading action in this holiday-shortened, fragmented week.
In today’s video, I want to focus on momentum levels…
Almost 90% of the stocks in the S&P 500 right now are trading above their 50-day moving averages, and better than 80% are trading above their 200-day.
When we get to these levels, the market tends to start backing off — and hard. That doesn’t mean we’re about to see a crash. We may hang around here for a little bit, but it’s very, very hard to keep that momentum moving higher once we get to these levels.
I’ll cover all that and more in this morning’s “Premarket Must Watch” video!
Roger Scott Trading
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