Markets cut their losses in half with a dose of buying in the final couple of hours. The Nasdaq held up the best with a .2% loss compared to the S&P 500’s .3% fall. Volume did accelerate today as the S&P 500 did fall below the round 1800 handle as perhaps some stops were taken out. It was the S&P 500’s third consecutive loss, which has been rare in 2013. It did have its last 3 day loss after taking out the 1800 figure on 11/18 intraday, only to close below it. Before that you would have to go back to late September where the benchmark recorded a 5 day losing streak. Have investors become too complacent? Let us remember the S&P 500 has returned to its 50 day SMA each even month in 2013 to test the rallies validity starting in February. It did so again in April, June, August, and October. Would it only be fitting for the index to test it once again in December? Currently it resides about 3.5% from that level now, which would not be shocking to it tested yet again. We highlighted how energies weakness was a potential “canary in the coal mine” in regards to a softer economy, and now some metals are beginning to show some worrisome signs. Copper names have been frail with names like SCCO down more than 40% from its most recent 52 weeks high, and looking to record a sixth straight down week. FCX is in correction mode basically down the last 11 sessions. It has now lost both a bearish rising wedge pattern and its 50 day in the last week. X however did show some “steely” resolve, pun intended as it bounced off the 26 level as it has for the past month. That 26 level was important as it was resistance the first two weeks of 2013.
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