Stocks hit their highest levels of the session in the first hour of trading, and saw a gradual selloff throughout the course of the day. Stocks closed near their worst levels of the session with the S&P 500 seeing losses of 0.5%.
Nine of the ten sectors were in negative territory, led by financials (-0.9%), utilities (0.9%) and materials (-0.7%).
The market was very choppy today and traded in a tight range for most of the day. Tough call here, but the market is either resting for another push higher, or is telegraphing its need for a rest. The tape will tell us as it always does.
Some momentum names continued to roll over a bit today, so lets stay light on out feet. We will see lighter trading starting tomorrow, probably until the second week of January. I am adding DRV long this evening (TRIPLE SHORT COMMERCIAL REIT). I eyeballed it at the open this morning and wish I had added it earlier. If you take a look at IYR, it’s having trouble and may be cracking. The two big components of IYR (SPG & VNO ) are also rolling over. I would buy it around the 21.50 level, but don’t chase at the open as you should let it settle.