SPX delivered a golden cross as well as a Santa Rally of 3.085% from its recent low this past week (see Golden Cross, Gap Fill, Santa Rally(12/18/15)). Besides the possibility of the rally continuing (Chart 1-blue, Chart 2-blue,green), price actions open the possibility of meaningful volatility in coming days and weeks (Chart 1-red, Chart 2-gray, red).
These tracking scenarios in SP500 may be corroborated by those in the Dow Transports (discussed last week). See Chart 3 and Chart 4.
