Tuesday’s trading was light indeed with less than 800 million shares trading hands on the NYSE. With the majority of the stocks trading higher on the day, the Dow itself managed to increase its price to a place close enough to go for another record. We have been on the record here saying that we think the Dow will put in a new high sometime early in January. We also think that high could represent the final high in this move with much lower prices to come in 2007.
With such light volume, analysis of the action seems a little pointless. The only thing we see is the Dow staying at prices that make the world believe that the market is strong. Looking at the NASDAQ Comp and 100, the story is a little different with these indexes having some trouble reaching back toward those earlier highs.
There should be a few more traders around on Wednesday so maybe there will be more to report tomorrow but for tonight, we’re going to sign off.
Dow Industrials: 12,407.63 +64.41