In the midst of the general good holiday cheer, I’m the Grinch. I have to admit I expect a temporary near-term pullback. Temporary remember.

As the S&P 500 index impressively trends to new highs almost each day heading into year-end, a pullback appears likely from a technical perspective. In early December, I expected the SPX to trend toward 3300 by mid-February but with it near 3240 already, some profit taking sooner than later is likely.

Daily trading indicators, tracking 2-4 week shifts, are again signaling a reason to be near-term cautious given daily relative strength index (RSI) momentum has moved from neutral levels (50) at the December 3rd pullback low (3070) back to overbought (78) following the SPX’s +5.7% rally to above 3245.

Trading support begins at the 15-day moving average of 3188 followed by the 50-dma at 3110. In addition, the bellwether semiconductor group has begun to lag the S&P over the past week with daily RSI momentum peaking on December 20th above 70. My expectation is for a short-term pullback to take hold followed by another upside rally into February.

Moving to stocks, Amazon (AMZN) is a timely long position. I featured AMZN’s chart on November 29th as a bottoming candidate. It’s noteworthy this week after it surged 4.5% Thu...

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