Due to the holiday shortened session, today's issue of The Wagner Daily will be an abbreviated version.

Stocks fell sharply on Wednesday on mixed, but surprisingly high, pre-holiday volume. All five major indices plunged more than 2.0%, with the small-cap Russell 2000 losing 3.2%. The S&P MidCap 400 fell 2.7%, while the Nasdaq, S&P 500 and Dow Jones Industrial Average slid 2.4%, 2.2% and 2.1% respectively.

Market internals were mixed. Volume fell on the Nasdaq by 4.6% but rose on the NYSE by just over 2.0%. Declining volume overwhelmed advancing volume by a factor of 24.3 to 1 on the NYSE and 12 to 1 on the Nasdaq. Based on these figures we would classify Wednesday as a distribution day for the NYSE.

EUO hit its trigger and we entered the trade. Full trade details are available to our subscribers in the watchlist segment of the newsletter.

The market continues to slide lower and there appears to be no respite from the selling pressure. However, four consecutive days of mixed internals have saved the market from what could have been complete carnage.

Deron Wagner is the Founder and Head Trader of both Morpheus Capital LP, a U.S. hedge fund, and MorpheusTrading.com, a trader education firm.