So nothing crazy happened on Friday, volume was up but not that of a capitulation, internals were bad, and the stock markets exhibited some degree of survival for now.
Where does this market go from here?
It would appear if the US markets do get a “Santa Claus Rally” it will be of the Bad Santa variety. The 2018 scenario is not out of the window but there appears to be sufficient liquidity so as not to interrupt the Fed’s members from heading to St. Barts to snob it up with their benefactors for the holidays.
IF there is a Bad Santa rally this week, odds are it will have an upper range of 3920-3950 and a lower barrier around 3800. This is going to be a low volume snoozefest so do not expect much. Watch the overseas developments, especially in Ukraine after the 22nd however as that could create a stir to start 2023.