No. of Recommendations: 1

I agree with your assessment and feel that we will be in a general downtrend until the "fiscal cliff" is solved in some manner. The rise in the stock indices Friday show just how much "investors" are looking at this. Even saying the "meetings was constructive" causes optimism although that is almost always said of meetings.

The high/low values of the NYSE turned negative on November 7th (the Democratic president effect) but has gotten worse this last week with a general decline in the new 52-week highs (Friday had only 14 and the final four trading days had fewer than any trading day the week before) and an increase in new 52-week lows (The final four trading days had more lows than any day the week before and hit 272 on Thursday). For the week we saw 133 new 52-week highs, which is all right, but 392 new 52-week lows which is certainly not. More than 10% of the stock traded on the NYSE hit a 52-week low sometime during the week and many more than once. Needless to say, the daily breadth was bad also.

The NASDAQ was no better with every trading day having new 52-week highs less than 40 (with only 14 on Friday) whereas the last four trading days were all higher than the week before (and high 187 on Thursday). Only 68 stocks hit new 52-week highs out of the 2658 stocks traded, not good. On the NASDAQ, 361 stocks hit new 52-week lows during the week, and 14% of the stocks traded hit a 52-week low at some point during the week, Again many more than once during the week. Definitely not good. Needless to say, the daily breadth was bad also.

As I said in the beginning, I expect this to continue until a solution to the "fiscal cliff" becomes apparent.

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