12.1 U.S. Market Preview: The Thrill is Gone

By John Galt
December 1, 2011 – 05:25 ET

Now that the thrill is gone and so is the short covering rally, reality will return to the markets and in a violent sort of manner. Look for today to be a very mild trading day with weak volume and conviction compared to yesterday's thrill ride. The markets should trade up or down within a 0.5 to 1% range at the most with 1265 on the S&P 500 cash acting as upward resistance. That number is not pulled out of thin air by the way, it was the top of the September 19, 2008 move after the last coordinated world central bank intervention to keep dollars flowing throughout the interbank system.

Watch GS, MS, and GLD closely today because any major pullbacks in those stocks could indicate that the unemployment report is not expected to be a winner and the rally in stocks yesterday might well be the start of a replay of the September 2008 to March 2009 equity markets.