SHORT TERM: most markets closed
Overnight the only markets we noticed open were Japan +1.4%, and China +2.5%. Most markets will re-open tomorrow. Bonds, currencies, commodities and the precious metals were not traded. Medium term support remains at the 1386 and 1372 pivots, with resistance at the 1440 and 1499 pivots. Tomorrow: Case-Shiller will be reported at 9:00.
After reviewing the charts for the SPX we noticed the daily RSI is declining from 1448, with a negative divergence. On the hourly charts there is a positive divergence in place. The decline from SPX 1448, however, will start to look impulsive if the recent 1423 low is exceeded to the downside. It appears the market is reaching an important juncture during this inflection point.
A quick review of the foreign markets displays negative divergences, on the daily charts, for 50% of the indices we track. Despite the holidays, it appears the market will make its decision in the current week, or one that follows.
Short term support SPX 1422/27 and 1413/16, with resistance at the 1440 pivot and SPX 1463/64. Happy holidays!
MEDIUM TERM: uptrend
LONG TERM: bull/bear inflection point 50/50