The Santa Claus rally pooped out of the last day of the year with selling accelerating into the close and the VIX up over 20%. Going forward into 2015 there's a number of issues that may catalyze the market momentum and we'll look at a few of those in the coming week.
For now the historical record favors a bullish move on Friday, the first trading day of the new year and we have somewhat divergent signals between our M3 and LM models....VXX vs cash,,, so tomorrow's open will hopefully provide a better idea of how that will resolve.
The SPY TrendX is bearish and both model dashboards are bearish.....we just have to prepared for whatever the markets deliver and the new simple fixed limit stops on both models should help protect incremental capital appreciation.