US Markets- Dec21, 2009

Markets this holiday shortened week could potentially find the elusive Santa Claus rally but if he does materialize, he had better be good and make new highs...otherwise the the markets may very well start being very bad. The DJIA dropped to 10263.90 close enough to near-term support of 10235 for a slight bounce. How far and for how long of a bounce will give indications to the actual strength of the market. A break below 10235 will setup a test of 9700. This coincides with the dollar retracing part of its recent move, which so far has been nothing short of phenomenal. Near-term target remains 90. Gold should also retraces part of its decline, to coincide with the dollar retracement. Current scenario remains intact any advances in the markets should be viewed as selling opportunities. -Dio.