Not much action in the equities market this week.
According to my indicator, the SPX has managed to stay bullish, but it is very close to resuming a downtrend.
The buywrite/index spread is rising (bearish), but it is in a resistance area, and any turn around would be bullish.
The NAMO has turned positive, which is good for equities.
The summation index continues to rise, another reason to be positive on stocks.
Finally, the 30Y Treasury is beginning to show weakness relative to Gold. This may signal an end of deflationary fears.
Until volume returns to the market, any move should be view with suspicion if you’re a trend trader. Equities remain range bound, so I’m focused on opportunities in fixed income. I suspect the primary direction of 2009 will be revealed within the first two weeks of January, so I will continue to sit patiently, watch Twitter and play the Ukulele during market hours.