Tyranny, the after market hours trading for futures, we call globex trading, don't have much of significance, serious breakdowns or breakups in European hours has become more of a factor these days comparing to yester years. So I would focus how market does on newyork hours . I would also watch euro after London opens.
Rather than consolidating, it's failing on its moving average. Let's talk technicals .... How many different kind of bottoming they describe in book ??? Now picturise August low and October low and try to figure out what kind of bottom market is trying to make??? Possible outcomes for me is either double bottom at October lows or head and shoulders reversal as August , October and December lows . The way we shoot up from 1150s last time, the rally itself looks phony... But on rumor type... There are other timer methods to verify right shoulder has not formed properly. If fund managers wanted to buy stocks after Europe news on Friday, we should have sell off now and stocks would have been cheaper..... Imagine who doesn't want to buy cheaper???
This leads me to assume we r waiting for a sell off .... Remember, there should be plenty of buyers to sell whole lot of stocks..and we need lot of people to think market is breaking to upside so that shorts can unload ....
But triple witching next week, year end portfolio dressings and Santa clus rally can prolong this rally. My assumption would be failed for me if S&P closes above 1300. Otherwise stay patient... Good luck