General market overview

Generally during the Christmas period all the high players of the markets are on the holidays. I believe that is why it is easier to manipulate of stock or futures pricing. Right now everyone is talking about the Christmas rally. Well it is hard to tell, because the SPX index is in the neutral area where anything can happen. Although I have 5-6 open positions in both sides I have my own scenario for this market. Please look at the chart.

Both yellow rectangles represents support and resistance areas. Both areas are strong and worth keeping an eye. The general trend of the SPX is downside, because the price is below 200 MA, however, its conflicting with 10 MA and 30 EMA moving averages, because 10 MA is above 30 EMA which is bullish. The circle area shows the place where the decision will be made. Basically it is very risky to trade in this area just because it is totally unclear what will happen. EURO crisis is at the top of the stage. We can go both sides. 

 In the weekly time frame the general trend is still bullish, because the pricing is above 200 MA, however, 10  MA and 30 EMA crossover is giving a signal that right now for the short term period trend is downside. Moreover, comparing Stochastic both in daily and weekly charts the momentum side is bearish.
Personally I think that we are in a recession and we will be going lower. However, I will not place any more new orders while the direction of the market will become clearer. I see a lot of stocks that are worth shorting or going long. Market is very conflicting. It is wise to lower the risk and start evaluating the market after the Christmas and New Year.