Last week's rally in S&P still haven't broken the big downtrend from Sept/Oct yet. In fact, we just tested the top of the trend and bounced back perfectly. If we break below 860/850 on the S&P 500 today, then I'll be looking down for the day. Breaking above 895 would be a great sign. And staying around 890 would be good too, as it shows we're at least able to hold on to the gain.
However, do note that after such a quick rally last week. It is entirely normal to retrace back to load the gun. I plan to hold on to my intermediate term longs today.
The Asian market are all red overnight, except the Chinese markets. Shanghai (+1.25%), Hang Seng (+1.59%), and Taiwan (+1.30%) managed to stay just above even. As the Chinese market is very important in the global recovery, things aren't all bad in Asia last night. However, I would simply read this as a neutral sentiment as everything else were down as I said.
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The US Dollar Index is bouncing back up again. However, it is still within the downtrend we're in. I wouldn't worry too much until it breaks 87.50. If that happens, it would be another sign this rally is losing steam.
[caption id="attachment_944" align="aligncenter" width="500" caption="US Dollar Index"][/caption]
Gold is retracing after the speed climb last week. I would watch the fibonacci retracement level at 50% (780) and 62% (770) for important signs of retracement confirmation.
[caption id="attachment_945" align="aligncenter" width="500" caption="Gold"][/caption]
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