Friday's Sell Day a Concern

Last week was a shortened trading week (3 1/2 days) due to the Christmas holiday. The Nasdaq gained +1.26%, the S&P rose +1.27%, and the Dow performed best with a +1.59% advance. Volume for the week was below average.

It is more difficult to assess market action during short trading weeks, and especially during the back to back holidays (Christmas, New Year's). The tendency is to finish the year strong, and the Santa Claus rally usually carries into the first 2 trading days of January.

On Friday, the S&P and Dow closed down on lower volume, but the Nasdaq closed down with higher volume. Also the difference between advancers and decliners finished in negative territory, and the difference between up volume and down volume finished in the red also. This could be the beginning of some year end profit taking, and the coming week could see sideways or downward price action.