The SPX Premarket appears to be marginally higher than yesterday’s print high. Whether today’s opening and subsequent prices stay beneath yesterday’s high remain to be seen.

ZeroHedge reports, “With memories of last week's high-volume, post-Fed, quad-witching selloff fading fast, overnight the Santa rally defined as no volume, no breadth levitation, has continued for a third day and moments ago European stocks rose to their best level of the day, with the Stoxx Europe 600 Index headed for its biggest advance in a week, while US equity futures ramped on the European open as they traditionally do, and then again hit session highs minutes ago, as holiday volumes are in meltdown mode, and oddlots can move the E-mini by 1 point.”

This morning we read that a key global index is again at the precipice. Martin Armstrong warns us to “keep the powder dry” going into the year-end.

Our best clue on the status of the rally is TNX. It has made an exact 61.8% retracement so far this morning. A cross beneath Intermediate-term support at 22.51 will tell us that the bounce in Treasury yields may be over. Ditto for SPX.

The USD/JPY carry trade can be ruled out as the source of funding for this low volume retracement in SPX, since the dollar has been in decline since last Thursday. The overnight bounces in USD appear to have been stifled and this morning the dollar futures are marginally lower.

Today may be an interesting day.

Regards,

Tony

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