It looked a weak recovery, and today's action quickly exposed the nature of yesterday's buying. Volume was modest, as holiday trading continues to be a theme. Window dressing into end-of-year remains a bullish overhang, but there is no guarantee Santa will keep on delivering gifts. 

For the S&P, look to Fib retracements and 2,009 breakout support. Buyers may attempt another run at the index then.

The Nasdaq has delivered nicely on the ‘bear flag' breakdown. There is probably more to come from bears, with shorts likely to start covering at 4,610, down through the 50-day MA, to the first of the Fib retracements at 4,538.

The Russell 2000 finished with an inside day, a quite large inside day. However, the index is in effect range bound between 1,154 support and 1,191 resistance. Trading between these ranges is difficult given the noise of recent trading action.

Rallies can be shorted until there is a break of November highs. Measure risk accordingly.