One Last Shake

The market rarely fail to shake out the weak before it moves higher. Today the SP500 went down double digit to shake out the weak before it rally back toward positive territory in late afternoon trading, and closed at 1187.76(down 1.64 points.)

In the SP500 daily chart below, it shows how the intraday broke below the 50 SMA to spook those traders that were looking for support from the 50 SMA. After it broke and shake out those traders, the SP500 reversed and printed a doji hammer candle with a long shadow along with the low holding above the previous low of 1173 by $0.64 (subtle?). This could be the last shake out before the year-end rally get started. Happy holidays!

SP500: