120 Points down

The market closed the last day of 2009 down 120 points, breaking a pattern around 10,550 which had been acting for over 19 days as strong resistance.

Volume on the exchanges, and in option trading has been very light. Mark Twain once said, "History doesn't repeat itself, it rhymes" and we'll be talking about this, and the set of historical events that now influence how 2010 will perform.
We suspect the first three trading days this week will have the most volatility, with potential downswing consolidation and upswing to new buys. The problem is: which will come first?

The Dow pnf charts show us little, as we've shown little movement, and the mood of this market is petulant at best.

Using January expiry we'll trade a few days on what we think will be a swing, on higher volume.

2009 was the best first trading day of the year since 2003 that was up: Dow up 2.9%, S&P up 3.2%, and NASDAQ up 3.5%....Second trading day of the year, Dow up 12 of last 16.