Market Makeup

A rundown of various market themes for tomorrow's trade.

Despite the hefty haircut in the QQQQ's, my NASDAQ indicator is still bullish. Buy the dip is still in play until I see some O's, but I'm taking very small positions.

The BXM/SPX ratio is bearish as long as it is printing X's. Nevertheless, it is approaching resistance and a 10sma downtrend.

After mentioning HYG here, I rode today's wave up and I'm adding to it as the tape presents itself. JNK also has breakout potential.

Another bullish indicator is the rising summation index.

The first sign of potential inflation is here as the spread trend between the 30Y Treasury and Gold begins to loose momentum.

Today's action was a little hairy for a buy the dipper, and if there wasn't such a strong late day rally, I'd be pretty worried. Tuesday will be critical as further weakness will likely make my SPX indicator bearish. Smooth trading to all, and happy Hanukkah to my fellow tribesmen.