The bulls did well holding their ground on Tuesday but took a few steps backwards as the bears won their second-straight session by the slimmest of margins. The major indexes continue to dance with key levels of support and resistance but the trading range we have warned about is still in play.
The Dow dropped 14 points, or 0.1%, to finish at 12,951. The blue-chips stayed within a 100-point range after testing a high of 13,022 while the low came in at 12,940. The 200-day MA (moving average) is at 12,997 and a close above 13,000 will be important for the bulls today to avoid further downside risk. If so, the next speed bump is at 13,200, or the 50-day MA which stands at 13,144. We are waiting for a drop below 12,800 to add possible new bearish plays while a break above 13,200 would signal the all clear sign for a December rally up to 13,600.
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