or something like that.  CNBC now has a countdown clock and maybe even theme music for the fiscal cliff - a cliff hanger.  When Congress was confronted with raising the country's national debt ceiling the last time they knew very well that they needed to spend less and raise more money and start reducing this outrageous debt. As they refused to come to an agreement they did at least agree to set some rules that would take effect in 2013 unless they came up with a better solution. So far they have not done so in which case those measures agreed upon in the past will come about as planned. It is pretty obvious that with $16 or $17 trillion owed that they really must stop the bleeding and they seem to forget that this is the important issue. Of course it means cuts in government spending and it means increases in taxes but some short term concessions are vitally important for the longer-term solvency of the country. They seem to be quibbling over quite minor things in comparison to the magnitude of the problem. They are only talking about a combined possible savings of $1.6 trillion over the next 10 years with spending cuts and tax increases this is only 10% of what is currently owed and they want to take 10 years to do it. Undeclared foreign wars over the last 10 years have cost over $2 trillion alone. Many think that Congress ought to just stick to their previously approved plan and let them take effect at the beginning of the year, which would reduce spending and raise revenues. We seem to worry too much of this word called recession but often recessions have such a fine line of awareness that the start or end of them is not even identified for months or years after the fact. One may think that going over or not going over the cliff is very important but the presence of this countdown timer on CNBC make it appear to be more of a media event than one of actual huge significance. It  reminds one of the Y2K countdown.

This week, the major indices moved up though the NASDAQ was down due in part to the large drop in Apple. Even with the advance in the blue chips there was not a good  increase in the number of new highs which at least in the short term is a negative. This week we have triple witching on Thursday when futures contracts front months will switch to March from the current December and this may creates some added volatility.   It is common to  have some pullback over the next week or so and then a set up for a new year rally. The daily negotiations or talk of them on the news between the politicians will  give us some intra day drops and bounces.  

Lately several of the watch list stocks have kept on going over days or weeks - here are a coupled of recent ones. PANL triggered on Thursday and continued on Friday running over the top Bollinger band so short term overbought.

MNST  triggered late in November and looks like it may run again

CLGX triggered 14 days ago and may not be  done yet

ATHN another that triggered on Thursday came close enough to the first logical target at the 200-day EMA on Friday.

This chart is from 2010 but the seasonal trend continues. This is a ratio of the large cap  Russell 1000 and the Russell 2000 small caps. It shows that when the trend is up the small caps are doing better than the large caps and historically this begins in mid December. 

Before we get to the charts - a video.

Giacomo Sardelli  has made a timelapse message from ISS to all Humankind. He says, "" I wanted to use pictures taken from the International Space Station to tell a story and share the message sent by the astronauts who worked on the station in the last 11 years. They are working to open a Gateway to Space for all humankind, but people on Earth must understand that they have to get rid of the concept of borders on our planet if they want to follow the astronauts to new worlds in outer space. While the cosmonauts speak a day passes on Earth, from dawn to sunset, until the Gateway opens with a burst of light. The ISS then gains speed and goes faster and faster, the astronauts are leaving our planet which they see spinning faster and faster, merging earth, oceans and people together, ready to follow them, Further Up Yonder. This was my first attempt to craft a timelapse video. Pictures were downloaded from the Image Science & Analysis Laboratory, NASA Johnson Space Center and edited with Photoshop CS6. You Can Download the full resolution video . Credits Images courtesy of Image Science & Analysis Laboratory, NASA Johnson Space Center. Music: Synthetic Truth, by digitalR3. Audio messages courtesy of NASA.   Mr. Sardelli - His Blog  Give him a shout out on Twitter @giacomosardelli    Remember that you can use the button on the player  to view full screen.

Private sector employment in the U.S. increased by less than expected in the month of November, according to a report released by payroll processor Automatic Data Processing, although the data reflected the impact of Superstorm Sandy. ADP said the private sector added 118,000 jobs in November following a downwardly revised increase of 157,000 jobs in October. Economists had expected employment to increase by about 125,000 jobs compared to the addition of 158,000 jobs originally reported for the previous month.  graphs - RTTNews

The Labor Department said jobless claims fell to 370,000, a decrease of 25,000 from the previous week's revised figure of 395,000. Economists had expected jobless claims to drop to 380,000 from the 393,000 originally reported for the previous week.

Employment in the U.S. increased by much more than anticipated in the month of November, according to a report released by the Labor Department, with the report indicating that Hurricane Sandy did not substantively impact the data. The report said non-farm payroll employment increased by 146,000 jobs in November following a downwardly revised increase of 138,000 jobs in October. Economists had expected employment to increase by about 85,000 jobs compared to the addition of 171,000 jobs originally reported for the previous month.

The Labor Department also said the unemployment rate dropped to 7.7 percent in November from 7.9 percent in October. The drop surprised economists, who had expected the rate to edge up to 8.0 percent.

Labor productivity in the U.S. increased by much more than previously estimated in the third quarter, according to a report released by the Labor Department, with the report also showing a sharp drop in labor costs. The report showed that labor productivity in the third quarter jumped 2.9 percent compared to the preliminary estimate for a 1.9 percent increase. Economists had expected the revised data to show an increase of about 2.8 percent.

Additionally, the Labor Department said unit labor costs in the third quarter tumbled by 1.9 percent versus the preliminary estimate of a 0.1 percent drop. Labor costs had been expected to be revised to show a 0.9 percent decrease.

The Institute for Supply Management's nonmanufacturing purchasing managers' index unexpectedly edged up to 54.7 last month from 54.2 in October. Figures above 50 indicate the sector is expanding. "The economy continues to expand and, if we could clear up the uncertainty over the fiscal cliff, we think the economy is poised to grow at a 2%-3% pace in 2013," said analysts from RDQ Economics LLC.Strong demand for machinery and nondurable goods--products such as food and petroleum--helped propel the overall gain in factory orders in October, overcoming declines in the automotive and aircraft categories. Excluding transportation, factory orders rose 1.3% during the month. A key measure of business investment--orders for nondefense capital goods, excluding aircraft--advanced 2.9%, which is the best gain since February.

For some perspective into the all-important banking sector, today's chart presents the current trend of the KBW Bank Index. As today's chart illustrates, banking stocks peaked back in early 2007. The impact of an already weakening real estate market began to take its toll and banking stocks began to trend lower at an ever-increasing rate. This weak banking sector performance ultimately preceded the recent financial crisis. Following a post-financial crisis rally into early 2010, banking stocks have traded in a fairly flat/choppy manner (though with a slight downward bias -- see red resistance line). Since late 2011, however, the trend has been up (see green line). With banking stocks having recently pulled back from resistance and currently testing support, this all-important sector is fast approaching a critical decision point.

This past week's   sectors.

This past week's indices  -   

The first week of the month has passed and we see the S&P 500 is flat while the Russell 2000 is down just a little, though as we have shown above, it is entering a typically stronger period. The Dow is up 1% for the month while  NASDAQ is down 1%. The NASDAQ is considered to be more speculative and with the possible pending event financial decision coming soon, money is coming out of the NASDAQ and into the perceived better safety of the Dow large caps. Of course, another reason for the weakness in the NASDAQ is the  heavy weight Apple has on it as Apple has been weak. Oil continued lower and at the moment has a bearish engulfing candle for the month.

The 60 min. multi-index charts shows no  large extremes. This week though a small break above the top Bollinger bands on the Dow on Wednesday and then some consolidation for the final move up on Friday. 

The Dow closed just 40 points below the 20 week moving average and a break above, coupled with a New Year's rally could take it to test or break this years highs The RSI had dipped below 50 but ended the week above it. 

And here another weekly view showing the technical resistance overhead at the horizontal blue line. 

The Dow futures chart shows the Friday close was at the 61.8% Fibonacci retracement and a trendline resistance. This is a bearish wedge so worth watching for a possible break below the lower support line as it is common for the markets to take a dip before a year and rally. On the upside we have additional trendline resistance and especially watch that on strengths on a gap up on Monday as if it fails to break over it could began a least a short-term pullback. 

This is a tighter view and we see the close was also very close to this short term Fibonacci 127.2% projection. If it does break above the descending trendline. Overhead it has a 161.8% short term projection at 13,292. 

After a two week rally in the Dow transportation average it consolidated nicely for the week. Setting up for a test of overhead resistance. 

While the NASDAQ lost 1% this week. The NASDAQ summation index being slower to respond still reflects a bullish stance. 

The moving average of the number of new highs on the NASDAQ flattened out. 

The weekly chart of the NASDAQ shows that at its high this week it ran back into the underside of the recently broken trendline as this is very common for it to pullback as many enter short positions on tests of a broken trendline. 

On this timeframe chart we see the move up from the low  also ran into the original 38.2% Fibonacci retracement level and horizontal resistance.

That resistance is also clear on this timeframe of the 60 min. NASDAQ as here the high was at the 50% retracement. 

The NASDAQ 100 also having run to the 50% retracement of the latest move down from the highs closed on Friday at the 38.2% level. 

Even with the decline the mechanical chart of the NASDAQ 100 ETF remained on a buy this week. 

The volatility index closed under 16 this week, not at threatening levels. 

While the NASDAQ itself was down 1% for the week the semiconductor index gained 1% enclosed just slightly under the 200 week EM a. This would of course be quite bullish. If it could move up an additional five points putting it over the 50 week EMA 

Apple lost almost 9% this week and was one of the catalysts that moved the NASDAQ lower. It had run from the lower parallel channel trendline up almost 90 points to the 50 day EMA the and may soon test this lower trendline again. If that and the 50% retracement level is broken and we will watch the 61.8% at $458. All will be watching this trendline area again for another attempt at a bounce. 

The NYSE also has rallied back up to its formerly broken trendline, that shown on the top of this chart. On the lower half we see the moving average of new highs minus new lows has broken back above resistance after the bounce at the dotted line. 

On this closer view we see the new highs minus new lows are midway between support and resistance as the S&P 500 in the lower panel is right at resistance. 

58% of all stocks on the NYSE are now trading over their 50 day moving average 

The lazy S&P 500 chart had moved back to a buy last week and it remains so by about $.40. 

The bullish percent indicator for the S&P 500 almost went negative but it remains on a buy this week. 

Here is another view of this horizontal resistance on this weekly S&P 500 chart. 

And another weekly view showing the bounce one month ago at the 61.8% retracement level. 

Here is a tighter view on a daily chart, which shows the significant resistance in this area but also its bullish advance with the higher volume on Wednesday. 

Shown here on the 60 min. chart is not a perfect trendline but it shows the convergence of the upper trendline and top dotted line resistance meeting up probably on Monday. 

And on a 15 min. charts we have a pretty clear lower trendline which can be used for a stop or possible entry points if the support holds. 

The mechanical short term 15 min. S&P 500 chart had its largest move on the fifth after it closed its short position and went long. We have had a quick whipsaw market but the chart is still useful for reference and is found on our live stockcharts public page. 

The S&P  500 futures is between two Fibonacci levels and with an eventual clean break above that 1424 we could see a move to 1441 with some medium term resistance at 1430. 

The ultra S&P 500 long ETF went to a buy on November 19 and with a very brief cross over in the middle of this week, remains on a buy at the moment. 

The Russell 2000 is in a little island and they usually, in time get filled but the question is whether first it will test the $830 resistance line. 

In this Russell 2000 view we see this week's lows held the 38.2% Fibonacci level and the chart remains bullish. 

The 60 min. view shows more detail of the above chart and the very tight range. It  was very flat this week which generally leads to  an expanded move. 

The 3-X ETF for the Russell 2000 echoes the chart above as it sits at its 50% retracement level.  

The Value Line has a similar appearance and is bullish as it remains above the formerly broken descending trendline and looks just waiting to rise above the 3090 level. 

The 30 year US bond prices dropped a bit going under the 20 day moving average and may  again test the 50 day EMA. 

The banking sector index had a good week and has closed above the 50 day EMA and ended just under the descending trendline. 

The retail sector broke above resistance this week but closed down just a little. 

And here the daily view of the retail sector noting the Friday volume on the decline was lower than the first part of the week. 

The emerging market ETF gained 2.39% this week which put it back above this triangular trendline, which is quite bullish but to cement that it needs to close back over that $42.83 summer high. 

The Dow Jones world index up from its dip and has  similar horizontal resistance to conquer in the coming weeks. 

The FTSE is also back up to it's horizontal resistance and not far above the first line. We have a second area to conquer near 5989. 

The Canadian Venture exchange is back down to its summer lows. 

The Shanghai stock exchange composite in the prior week closed at new lows, though there was some positive divergence on the RSI. That played out as it ran up over 4% this week. 

Guangzhou  known historically as Canton or Kwangchow is the capital and largest city of the Guangdong province, People's Republic of China. Guangzhou is a key national transportation hub and trading port and one of the five National Central Cities, the third largest Chinese city.  As of the 2010 census, the city had a population of 12.78 million. Here is quite a fine time lapse of Guangzhou with nice view of the old and new of the city.  

The commodity ETF ran  to the 50 week EMA and was rejected and dropped over 2% this week. The volume was also very high. 

Oil had been sitting in this possible bear flag that was building 44 weeks and dropped soundly out of it. this week also closing below the 200 week EMA. 

The daily view of oil is not quite as bearish as new weekly because we see there is some support just down near the $84 level. What is interesting is the Dow had nice gains this week while oil dropped although oil stocks are quite important to the Dow. 

Natural gas dropped 1% this week but is still above the trendline it broke out of in late summer. The histogram is getting closer to zero and the MACD is worth watching for possible crossover. 

Natural gas futures after putting in a rally dropped back towards the $3.50 recent lows. This shows a short term Fibonacci projection from that recent rally on a break lower we can see  the 127% and 161.8% projection levels. 

Gold closed the week three points below the 20 week moving average  well-off the lows of the week so there is a chance it could bounce right from here. 

The daily chart, though shows it is possible it is just forming a new small bear flag which then could drop it once again to test it least the 200 day EMA currently at 1679. 

The gold miners ETF lost 3.4% this week though still above its is broken trendline. This trend remains down. 

Our gold miners mechanical chart  remains on a sell though you see there was a small gain on Friday. 

The silver ETF lost 1% this week as the 20 week moving average remains "bullishly" above the 50 week EMA -  by $0..25. 

The S LV 60 min. chart became bearish on the drop below this parallel channel and now to gain some favor needs to rise above the $32.20 s level 

The S LV mechanical chart has one red box and needs an additional one to switche to the short side. 

Copper gained .63% this week but it was more like positive consolidation. 

Palladium has now been up six weeks in a row since the trendline test by and it closed right at resistance as the Williams indicator has gone back over 20 though RSI is still only at 61. It is not yet over the top Bollinger band but it could pullback or at least go sideways a while before a further advance which at the moment looks likely 

The euro lost .46% this week closing pennies under the 50 week EMA with overhead resistance quite clearly defined. 

The US dollar continued its advance this week going up along with the Dow which in the past was very unusual. It closed at the convergence of the 50 day and 200 day EMA. 

The US dollar futures ran up to trendline resistance and then sold off a little on Friday. 

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Check the updated/strong> Earnings Calendar on all overnight holds.

This week's economic calendar for the USA.