Squawk Morning Briefing for 12/26/2012

A holiday shortened session on Monday offered little reason to alter outlook. Equity markets continued down but the action wasn’t sufficient to make any further progress in generating confirmation that a high might be in. In the DJIA, coming below the FibGrid treeline is helpful to the bearish case, but as we’ve stated before, it needs to use that action as a starting point to take out more levels in an impulsive manner to be truly meaningful. In both DJIA and YM the checklist of items we need to see for confirmation haven’t changed from what they were going into Monday’s session, nor has the outlook in other markets.

Our next full video update will be this evening for DJIA and Thursday morning for all other markets.