In the battle between the Santa Clause rally and the fears over tapering, the later has won. Stock market fell heavily last evening. In Christmas markets we get exagerated moves and last night that is what happened. Volatility will continue up until the 18th when the FOMC can deliver their verdict. In the mean time anyone trading these markets needs to be careful as the moves are not justified by the news. It is a good market for going with the flow rather than trying to fade the moves.
Elsewhere the Euro is trying to break the year high at 1.3831 Looking pretty strong and supported so if you take this short have a close stop. A break above may lead to a test of 1.4000
Levels today are Euro 1.3825 1.3760 S&P 1782 1775 Wall St 15900 15790