TheStreet.com RealMoney
A Gradual Return to Normal

By Dick Arms

About this article:
The low-volume crosscurrents at year-end are giving us little new information. We still have an oversold situation as far as the Arms Index moving averages are concerned. We still are seeing a small sideways move, but within a market that appears to have made a very important low in October and then tested it in November. We are seeing a reduction in volatility and a return to more normal trading. Also, the big last-hour moves that were continually rattling the markets are lessening. There appears to have been a return to a less emotional market. All this is good, I believe. It makes the bottom in October and the subsequent intense swings look like a bottoming process that is largely behind us. The wide base formed during that time suggests a substantial market advance down the road. The current hesitation could last a while longer, but...

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