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INVESTORS NEED A BOOST

Politics were center stage today with Healthcare law deemed unconstitutional on a first round verdict while the Senate seems ready to approve the tax deal. In the meantime investors seemed to be biding their time. This is probably the last busy week of the year with lots of data and quad-witching.

Volume remains weak and bulls are just hanging around it seems "managing" the market to the year-end.

The dollar rally faded today, bond prices rose slightly and commodities rallied. There was also the obligatory

POMO

activity of nearly $8 billion Monday.

Breadth was flat to negative and volume was especially light once again per WSJ data.

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Continue to U.S. Sectors, Stocks & Bonds

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Continue to Currency & Commodity Markets

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Continue to Overseas Markets & ETFs

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The

NYMO

is a market breadth indicator that is based on the difference between the number of advancing and declining issues on the NYSE. When readings are +60/-60 markets are extended short-term.

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The

McClellan Summation Index

is a long-term version of the McClellan Oscillator. It is a market breadth indicator, and interpretation is similar to that of the McClellan Oscillator, except that it is more suited to major trends. I believe readings of +1000/-1000 reveal markets as much extended.

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The

VIX

is a widely used measure of market risk and is often referred to as the "investor fear gauge". Our own interpretation is highlighted in the chart above. The VIX measures the level of put option activity over a 30-day period. Greater buying of put options (protection) causes the index to rise.

Continue to Concluding Remarks

It isn't too surprising that volume remains light. After all there is an FOMC rate decision Tuesday afternoon and despite the fact nobody is expecting any policy changes, waiting may be the best policy. After all the Fed is in new policy territory.

Tuesday will also feature Retail Sales, Business Inventories and the PPI.

Let's see what happens. You can follow our pithy comments on

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Disclaimer: Among other issues the ETF Digest maintains positions in: SPY, MDY, IWM, TNA, QQQQ, XLB, UYM, XLI, XLF, TBF, GLD, SLV, DBC, USL, DBA, JJC, MOO, EFA, EWJ, EWU, EWG, AFK, MES, EWA, EWC, EWZ & FXI.

The charts and comments are only the author's view of market activity and aren't recommendations to buy or sell any security.  Market sectors and related ETFs are selected based on his opinion as to their importance in providing the viewer a comprehensive summary of market conditions for the featured period.  Chart annotations aren't predictive of any future market action rather they only demonstrate the author's opinion as to a range of possibilities going forward. More detailed information, including actionable alerts, are available to subscribers at

www.etfdigest.com

.

This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

Dave Fry is founder and publisher of

ETF Digest

, Dave's Daily blog and the best-selling book author of

Create Your Own ETF Hedge Fund, A DIY Strategy for Private Wealth Management

, published by Wiley Finance in 2008. A detailed bio is here:

Dave Fry.