Week of 12/19-12/23 A sign of relief as U.S. stocks close higher before the Christmas Holiday

Stocks drifted higher to end the last full trading week of the year. Throughout the volatile week of trading, the market recovered its losses and ended basically flat for the week. The most important thing about Friday's move to the upside, is that it creates a positive sentiment towards where the market might be headed. It does not only indicate resistance at lower levels but also buying pressure that could create an extended short squeeze. As with all failing rallies this year, we might be facing heavy selling next week since investors are quick to take profits or liquidate positions at a smaller loss.

Happy Holidays from our team at Tradeknow!