December can be a sucker's month as lighter volume can make the market look better than it really is.   As for this year, unless the government announces its 'bailout du jour', there is little sustained upside movement.  When I say sustained, these days that simply means holding gains into the close.  Those of you who are position traders and are in cash should stay there until after the first of the new year and let the market show which way it intends to move once serious volume returns.

I am attaching a daily chart of the Dow to illustrate the weakness and symmetry being displayed by this market:

  
First notice how the downward sloping channel drawn off of the October 2007 high (the green parallel lines) was broken in October 2008.  Then notice the red parallel lines, drawn off of the May 2008 high.  Both channels were violated at almost the same time, and price has tried to climb back into the red channel, but has been too weak to do so, just bumping on the bottom channel line from below.   This weakness is very telling.  If price was unable to climb back into the red channel, that obviously means that no strength was ever mustered to rally up to tag the lower channel line off the October high (the lower green line).  That tells us that there is just no buying interest out there. 

Next look at the blue boxes on the chart.  The first two show previous congestion areas that resulted in nasty declines.  We are currently tracing out the same pattern in the third box.  Is another sharp decline likely?  

Next notice at the very top of the chart on the right hand side.  The last two corrections have lasted exactly 17 trading days.  That is symmetry folks.  Symmetry shows that the market has a rhythm and is in synch with the trend.  The current trend is down.

Remember - we have cycle change points that are due in late December/early January.  As I previously posted, this market could be in for another sharp selloff if the indices levitate into that timeframe.  So far that has been the case.

There are many out there who are saying that the market has stabilized and it is time to begin putting money to work.  DO NOT LISTEN TO THEM!  Take your cue from the market itself, not a commission generating advisor that is still pushing the broken 'buy and hope' model.  Times are tough folks and there is no reason to throw money back into this market simply because someone tells you to.  The market itself speaks volumes and right now it is saying stay away. 

If and when the market proves itself, we will know and trade accordingly.