Dec 30 2012, 8PM CDT Update
Public news media is reporting that no Fiscal Cliff agreement has been reached, and talks will resume at 11 AM Eastern time on Monday Dec-31. If this is not resolved by Jan-1, I anticipate a negative market response with a strong sell off and decline.
Lets take a look at the SP 500 Index chart. You will see a drop in the index on Dec-21, along with above average volume, which is indicative of distribution or selling in the index. The above average volume is double-worrisome, because the markets are historically low volume during Christmas week. In other words, we had a historically low volume week, but on Dec-21, we still had high volume coupled with a downtrend. The following days the market continued lower, albeit on lower volume.
Lets take a look at the SP 500 futures, which trade into the evening, after the regular stock markets close. You will see that the market sentiment continued, with a downtrend in the futures.
As of now, 8PM, the SP 500 futures are at 1389, which is not much different than Friday’s performance.
Lets see what shakes out between now and Jan-1. I am personally 100% G-Fund, my TSP balance is not exposed to any volatility or damage which may occur.
Thank You
