After sticking my neck out last night the market promptly chopped off my head today! That's the way it goes sometimes in this business, especially lately.

With the late day move down the market retreated to the lower boundary of the rising bearish wedge. That offered some support, as you'd expect, but this now puts a premium on tomorrows action. The reason why is that throughout this bear market I've noticed several rising wedge patterns like this one that have failed to finish the pattern. They then broke to the downside, which they should, but without completing the third and last push higher. A break lower from here will be a continuation of that bad and very bearish habit.

Otherwise I didn't judge the action today as all that bearish. The internals were fairly strong most of the day, for a down day that is. That's one of the markers you look for, whichever way the market is moving. Stronger internals on down days are a clue that the advance may have further to go. Also the LQD, a high grade corporate bond ETF, and the HYG, a high yield bond ETF showed strength today. That's usually a sign of positive liquidity, unless it's different this time. With the Fed sending signals of their willingness to interfere in the bond markets, it's possible some big money's front running the next target, the corporate bond market.

All of that being said, I'm still favoring an upside move through the last two weeks of the year on light volume. Remember the rally that emerged the Friday before Thanksgiving. Be alert though. Any failure here could be severe.