9:00am (EST)
The bears pushed their winning streak to 3-straight following Wednesday’s pullback. The selling pressure picked up steam shortly after our midday update as the major averages tested another layer of support. So far, the mini “selloff” has gone as scripted and we are another day or two from reaching a crucial point in the market.
The bulls have done a tremendous job of keeping things in check and at some point they will rebound or things are going to ugly. Everybody and their Wall Street brother wants to see the so called “Christmas rally” but there only 7 trading sessions left before Santa runs out of time.
The Dow dropped 131 points, or 1.1%, to end at 11,823. The blue chips touched a low of 11,786 which now brings 11,600 into play. If the bears take out this level then it will be really hard for us to make a case for the bulls reclaiming 12,000 by Christmas or yearend.
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