Apparent Santa rally start with absence of sellers can still gain more strength to lead higher

Well you had to be a believer on Friday with the move off the high TRIN and that .618 retrace I'd been tweeting about that day. After today's gap up, there was little intraday range, although I tried one long scalp that failed and then another from SPX 1112 retest that was pretty mediocre. The ChartsEdge weekly shows (and I know, others are also saying) some level of a low point Tuesday. So whether or not that goes under 1112, 1107, even 1100 (I know the ChartsEdge suggests 1090/1092, will see), it may give traders a better springboard for reaching a higher rally high during this holiday-shortened week.

Below I show the euro (FXE) daily, and SPX hourly. The latter, you can see has some positive showing in the indicators that, especially with a buy-lower opportunity, can help support more upside. The euro, I'm showing because it's looking oversold near the 200-day moving average. Of course there's no guarantee or confirmation of a bounce, and the MACD alone says it's rather early to speculate on a bounce in euro. But at the price support it's testing, it can be logical to start looking for at least a retracement bounce. The point is, that would go hand-in-glove with the dollar weakening, and fueling more rallies in equities, gold, and many commodities.

For the swing trade perspective, we're not going to abandon the idea of a stronger dollar and selling of many asset blades against the dollar (equities, oil, maybe gold, and many commodities). But we're going to defer taking those up for now, and let rebounds occur through the holidays. If all this plays out according to plan, we'll be able to revisit those themes for bigger swing trades in about 3 weeks. So meantime, we'll be glad to join the parties!