The Technical Picture Is Promising

 | Dec 01, 2011 | 4:37 PM EST  | Comments
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The indices were down a little today with about 2100 gainers to 3400 decliners, but after rising more than 7% in three days, things are better than you might expect. The logical move is to look for profit taking, but what we saw today barely made a dent.

We have monthly jobs news tomorrow morning, which should move us for a few minutes, but the focus will quickly shift back to Europe. There is plenty of talk about the next step as leaders of France and Germany meet this weekend. News is expected on Monday, and this market loves to celebrate European headlines.

I'm not worried about major downside unless we have some surprising news. Markets like this can be surprisingly sticky to the upside. It is just a matter of staying patient and waiting for consolidation and alleviation of the overbought conditions. If the buying dries up and we start to pull back too deeply, I might change my view. The technical picture is promising, but we don't want to be too eager, as stocks look rather tired.

The best thing to do right now is to work on your shopping list and keep a close watch on favorites. Another leg up could develop quickly, especially if the bears are unable to produce much of a pullback.

Have a good evening. I'll see you tomorrow.

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