Major averages rose yesterday on lower, below average, holiday week volume. While trading volumes tend to be lighter this time of year, last minute portfolio adjustments made by fund managers can add volatility to the markets such as during the last week of 2012 and 2014. Thus always keep your eye on the ball.
Pre-election years are usually bullish for markets. Since 1939, the Dow has always closed with a gain in a pre-election year. If it cannot close above 17,823 by the end of this year, this may imply rough waters for 2016.
Further, the "Smart Money" OEX Options Indicator hit its most bearish reading in history. While it is does not pick exact tops, it has a decent track record since 2000 in forecasting either intermediate or major market tops as it did in early 2000, late 2007, and in early 2011, or periods of chop as it did this year.
Futures are up about 0.35% at the time of this writing.
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