Market Monday 12/17

[ron]

Weakness over mrkts continues as concerns of inflation, credit risks, overseas pressure and negative technicals weighs on the the action.

economic reports:

- The NY State Empire Manufacturing Index came in at 10.3, which is less than the expected reading of 21.0.

- Third quarter current account balance was $-178.5B. Last quarter's current account balance was $-188.9B.

[ron]

The major indices are hitting fresh session lows .....Dow -138 Points, Naz -45.97, S&P -16.27, NDX -41 rtq. (real time quotes)

[ron]

am seeing sideways drift through much of the morning for the market avrgs giving away to new lows with the lagging Naz breaking under its 200 sma- ema at 2599 (session low 2589)........ Initial support below is at 2586/2582 followed by the 2667/2662 area.

[ron]

the stock market pares some of its losses, but continues to trade significantly lower. Naz has seen the smallest amount of buying interest, and continues to trail the Dow and S&P 500.....Dow -125 Points, Naz -42.86, S&P -14.57, NDX -38.54.

[ron]

this type of weakness persisting over mkrts has nothing to do imo with inflation or the credit crunch...... This is a liquidity issue that fed must address at once, as simple as that ....... Fed here is being extremely tight...the inverted yield curve must be fixed now.