Weekend Report for Monday, December 23, 2024

Bottom Line:

The US indices bounced strongly on Friday from deeply compressed conditions. I discussed this in detail in Special Reports on Wednesday and Thursday.

Now, there is some evidence an important low could be in place. Seasonality is typically very strong this time of year which is potentially helpful.

Friday’s lows in the indices are important. Ideally we won’t see much further retracement into Friday’s day session ranges. A test of Friday’s lows by one or more of the primary indices cannot be ruled out, but if that occurs we want to see a strong rejection and rally from that point under a bullish assumption.

Christmas is Wednesday. Volume will be exceptionally light all week.

MERRY CHRISTMAS!

PDF: Weekend Report_2024_12_23

VIDEO: https://youtu.be/GHaTiqTu1A4

________________________________________________________________________

SPX

Upper KRA: 5982; 6103
Lower KRA: 5833; 5782; 5705-5673

NDX

Upper KRA: 21543; 22141
Lower KRA: 20904; 20494-20322

DOW

Upper KRA: 43233; 45074
Lower KRAs: 42142; 41780-41617

RUT Weekly

Upper KRA: 2373; 2470
Lower KRA: 2204-2167

New York Composite

Upper KRA: 19566; 20333
Lower KRAs: 18865

Internals – VIX

VIX spiked dramatically on Wednesday and has dropped almost as dramatically since. This pattern is usually bullish.

Internals – NYSE Data

From last weekend’s Report: The 10-day MA of NYSE advancing issues is near a “buy” level. This does by no means imply price can’t spike sharply lower, but if that were to occur we will find out quickly whether or not we have put in a top of significance.

Internals suggest an important low could be in place.