December Likely to be a Choppy Month for the Stock Markets

This morning, futures are pointing to a down open and the market bias indicators are neutral.  The market condition scans still indicated a trading range market, with no strong bias in either direction.  In such a market, trend following indicators such as moving averages, RSI, ADX, do not work that well.  In this type of market, oscillators give better confirming signals.  Also, because stocks can move rapidly up and then collapse, it is important to identify and take profits.

In terms of market news, the Bank of Canada will be making its interest rate decision this morning.  Japan has announced another stimulus package and German industrial production is down 1.8% in October.  Canadian housing starts were up last month. November passenger car sales hit a record high in China.

Bank of Nova Scotia (BNS.to) missed estimates on earnings, so we may see the Canadian financials suffer today.  Gold and silver are pulling back but remain above their 50 week moving averages.  These commodities may have one more speculative run.

Index	Change	%Change	Level	Phase
TSX				Bullish
DJIA	+1.21	+0.01%	10390.11	Bullish
Nasdaq	-4.74	-0.22%	2189.61	Bullish
SP 500	-2.73	-0.25%	1103.25	Bullish
Russell 2000	+0.77	+0.13%	603.56	Bullish
NYSE	-26.98	-0.38%	7155.73	Bullish

Source: Telechart

Short Term market outlook:

Bias: Scans showing a neutral bias

Energy: weak

Primary Trend: sideways

Market: Trading Range

Sector	Phase
Consumer Staples	Bullish
Healthcare	Warning
Technology	Bullish
Utilities	Warning
Energy	Bullish
Financials	Warning
Industrials	Bullish
Materials	Bullish
Consumer Discretionary	Bullish

Source: Telechart