R.C. Market Report 12.19

• Monday's Forecast: Setting up for start of next trend

• Today: Other than the pop from the auto bailout news in the morning, it was another pause day for the market.

• Monday: The market is getting squeezed between the 50 and 20 day moving averages. The strength and the speed of the ascent worries me enough to believe that we can break the support and go lower. However, VIX keeps going down and oil looks to be very close to reaching a bottom as its volume picked up in the past week. Also, market has been holding up on bad news, so there are reasons for me to think that we break the resistance to the top and go higher too. I don't know which way we'll go. But I do believe that we've been squeezed into a range that's as tight as it can get, and we'll break out of it one way or another. Monday may be the start of that new trend.