Major averages were roughly breakeven yesterday on low holiday volume. Most leading stocks pulled back after gains made since the market lows of two Tuesdays ago. Oppenheimer downgraded the cyber-security group, leading most of these stocks to reverse with Palo Alto Networks (PANW) taking the brunt of the selling. It is possible that as these stocks pull into areas of potential support they approach lower-risk entry points which investors should be alert to.
Given that New Year's Day falls on Thursday of this week, light holiday trading should persist until Monday Jan 5, barring any major news shock.
That said, oil continues to aggressively trend lower as it broke to new lows on Monday. The fast fall in oil can have deleterious effects on other areas of the markets and also in other countries. The United Arab Emirates said that the oil cartel would accept a price slump right down to $40 per barrel, or roughly another 25% fall from current levels.
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