Friday's ability to hold a modest gain was supposedly based on the belief that a fiscal cliff solution may be in the works... but we'll just have to see if that's hype designed to pump the markets for the big short sellers or something more substantial. There was medium volume of Friday...an encouraging sign except recall that Friday was also option expiration day, which normally sees good volume as traders unwind positions, pin strikes and play other position realignments.
Net result...we're still in a wait and see mode as the Israelis and Hamas lob hundreds of missiles at one another with the Israelis appearing to have a more precise targeting skill. Over the weekend we're seeing various foreign leaders taking sides in this dangerous conflict so don't look for any quick resolution of this situation, which could get really ugly before a stable truce is achieved....and the markets will probably reflect the ensuing uncertainty.
