Tuesday, December 27, 2011

Finishing 2011

This final week of 2011 promises to be a relatively quiet one for the markets. Many of the traders are on vacation this week, and there are only four trading days to being with, so we shouldn't expect to see a lot of movement either way.

On the other hand, though, this could be a make-or-break week for the major indexes. This past year has been characterized by a lot of volatility that has brought us more or less right back to where we started the year. At the end of last week, the S&P 500 inched back into positive territory for 2011, putting it at a minuscule 0.6 percent gain for the year. So even the smallest decline could put the S&P back under the break-even point.

The Nasdaq is in a somewhat different position - at the moment, it's down 1.3 percent on the year. A small rally could push it into positive territory for the year. The Dow Jones average, though, looks like it will safely finish the year up: it's gained 6.1 percent so far for 2011.

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