Just two trading days remain in 2016.
Yesterday the markets fell after the opening bell, and then fell some more.... closing the session near the lows of the day. In all of 2016 the market has closed at the lows of the day just two times.
Last year the selling started began the last two sessions of 2015. The negative momentum didn't let up until the price action went into the history books as the worse start ever to a year for the stock market.
Will we see a similar start to 2017?
The euphoria surrounding the Trump presidency could subside early in 2017 and result in some profit taking. Momentum is starting to wane again, and this time price action could follow.
I don't think the pull back will be anything like what we saw at the start of 2016. And as much as you may think higher interest rates will move the stock market lower, we know better than to believe everything we read or see on a financial network. In this click driven world negative headlines sell.
Any pull back into 2017 will be dubbed as the final top for this bull market.
However on a longer time frame higher prices have been the path of least resistance. And until that changes expect the next dip to be met with a bevy of dip buyers.
While short term momentum looks to be fading. Long term momentum remains intact. And if this market has taught us anything the last 7+ years, trading for more upside has been a lot easier that trading for the occasional pull back.
