Stocks are heading south to test November lows

It was all about the numbers, December Retail sales figures were worse than expected.  However, if one would have just traveled to your area mall would know that malls were simply not packed.  The US consumer simply stayed home and did not “spend.”  Stocks reacted negatively as one might expect and each rally attempt was met with selling.  Banks were hit hardest as JPM earnings were set to be released Thursday morning; a week ahead of schedule.  At the end of the day the NYSE volume was higher and the NASDAQ was lower.  Financials continue to be a place where max pain is being felt which continues to be toxic to the entire market.

Throughout history the stock market has had its fair share of 50% corrections.  No different this time, but we are at an interesting point.  Will the November lows be tested and held?  We are in the process of testing those lows at the moment.

The end of this week should shed light on the direction of the market for the following few weeks!

MS

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