Market players were concerned that Friday's consumer price index report might trigger some selling but, although it was the highest reading in nearly 40 years, it was roughly in line, and the market action was muted. What did occur was another round of indexes running higher on negative breadth.
A few big caps like Apple (AAPL) , Oracle (ORCL) , Microsft (MSFT) , Ford (F) the surface, there were 3,450 advancing stocks to 4,650 decliners, and there were 110 new highs to 170 new lows. The Russell 2000 ETF (IWM) and ARK Innovation ETF (ARKK) finished in the red, while the Dow Jones, Invesco QQQ fund (QQQ) , and the S&P fund (SPY) were green. Small caps and growth stocks lagged.
It is difficult to understand how this lopsided action that keeps on becoming more lopsided will resolve itself, but the business media and traditional Wall Street really doesn't care. As long as Dow and SPY are up, then the market must be in great shape.
The good news is that the action this week is helping many charts to develop well. There were two very big days and then some basing and correction. That is setting the stage for better technical action in many of the stocks that have been lagging. I'm hoping that stock pickers will help to drive a little Santa Claus rally action in the next few weeks.
Have a great weekend and get that holiday shopping done.
