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Assessment: Given that this year in the market was just a slow grind upward, without almost any pain for the bulls…could we possible see a Krampus crash versus the usual Santa Claus rally? I know the sportsbooks want Krampus to show up for the next two weeks of the year, but what about in the market.
Today’s break of SPY $600 was a material break because usually such cracks are easily recovered. Not only did SPY $600 crack, but we also broke the 50 day SMA and is so far holding below it. The days ahead will tell the real story, but this is the first time in a long time that we have seen a candle like this one.
SPY Chart: https://sblk.io/s/KRX4tJcPTmsPBfy0
We are way overdue for a sell-off, but I thought it would wait until January…as did many traders…which is perhaps why it is happening now. Let’s see what happens!
Good luck in your trades!