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(12/3/16)
Typically December is the best performing month for the market
as the S&P has been positive 74% of the time since 1900. Meanwhile it
has been rare to see two December's in a row with a negative return which
happened in 2014 and 2015. Also notice there has never been a period of
time in which the S&P has had "3" consecutive December's with a
negative return. Thus it's highly unlikely the market will have a negative
return this month based on past history.
Meanwhile the S&P 500 has encountered resistance at the top
of its upper Bollinger Band. The last time it reached its upper Bollinger
Band the S&P 500 lingered around it for roughly 5 weeks before going through
a correction (points A to B). Thus it's certainly possible the S&P 500
may linger near the upper Bollinger Band through the month of December and make
a slightly higher high.
Finally as I have mentioned before if we are seeing a 5 Wave
move from the February low the S&P 500 shouldn't rise above the 2243 level.
Amateur Investors
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