Sluggish Trading, Late-Day Rally Lifts Dow

A late-session rally moved the Dow into positive territory into the close, and pared losses on the other major averages. The entire trading day was spent with the Dow criss-crossing the unchanged line. Trading was spotty, sporadic and inconsistent.

This was a bit of a change from the volatility seen recently, though there are still enough jittery global events and data points to make traders nervous heading down the home stretch of the holiday season.

Using Fibonacci numbers to exploit the current rally - using intra-day numbers on the Dow - maths out like this:

December 3 high: 25,980.21
December 10 low: 23,881.37

Difference: -2,098.84

First resistance (23.6%): 495.33 points = 24,376.70 (Dow closed at 24,370.24 on Tuesday, December 11; Close enough!)
Second resistance (38.2%): 801.76 points = 24,683.13 (the Dow exceeded this level on Wednesday, but pulled back below it at the close. On Thursday, the Dow approached this level but could not exceed it, signaling a possible breakdown to end the week.)
Third resistance (50%): 1,049.42 = 24,930.79
Fourth resistance (61.8%): 1,297.08 = 25,178.45 (this is usually the key, where resistance is very high and a pullback can be expected. If the Dow powers through this level, expect it to go all the way back to where it started, i.e., 25,980.21 (100% retracement).

Dow Jones Industrial Average December Scorecard:

Date	Close	Gain/Loss	Cum. G/L
12/3/18	25,826.43	+287.97	+287.97
12/4/18	25,027.07	-799.36	-511.39
12/6/18	24,947.67	-79.40	-590.79
12/7/18	24,388.95	-558.72	-1149.51
12/10/18	24,423.26	+34.31	-1115.20
12/11/18	24,370.24	-53.02	-1168.22
12/12/18	24,527.27	+157.03	-1011.19
12/13/18	24,597.38	+70.11	-941.08

At the Close, Thursday, December 13, 2018:
Dow Jones Industrial Average: 24,597.38, +70.11 (+0.29%)
NASDAQ: 7,070.33, -27.98 (-0.39%)
S&P 500: 2,650.54, -0.53 (-0.02%)
NYSE Composite: 11,936.16, -7.13 (-0.06%)