We can see below that both the 20DMF and the Cumulative Tick led the markets lower yesterday.
The small caps displayed a negative Money Flow.
However, the leading NQ8 did not show a similar weakness.
Conclusions:
With markets overextended as they have been for months, even the smallest concern could spark a stampede to exit long positions.
BUT... the Santa rally is still to be expected. We can see in the table below (that I published in past days but have slightly reorganized) that yesterday was December 14 and yesterday's December 14 S&P500 gain was rather weak compared with past year gains as of the same date. Stats show that the probability to end the year strong is rather high.
Hence: I'll buy today's weakness.
