Several years ago on Meet the Press, former Federal Reserve Chairman Alan Greenspan made the comment that the Fed would not allow the markets to be the straw that breaks the back of the economic recovery.  Three Quantitative eases later (call them what you will) and you would have to say up to this point, mission accomplished.  Today, the economy is still struggling but the markets have not collapsed.  So far, the markets have not added to the growing number of problems that are chipping away at the fragile legs of the economy.

Now, we are heading into the close of another year.  So far, while Thanksgiving was a real turkey, Santa has provided a bit of a spark early in the Holiday season.  Will this Santa Clause rally be enough to carry us through the first quarter of next year?

We are at a critical juncture in the Dow and S&P.  All the movements over the last few weeks, bullish and bearish, have really amounted to little progress.  This last rally has put the markets in a position to make a run at the previous weekly wave 4 swing highs.  If they get taken out we should see the next resistance levels to the upside.  If, however, they continue to fail, then we will likely see a test or near test of the October lows.

Check out all the analysis for these markets including gold, silver, oil and the USD using the MTPredictor Elliott wave and Fibonacci trading software for stocks, commodities, futures and forex.

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Tags: alan greenspan, commodities, Dow, elliott wave software, fed, fibonacci trading software, forex, futures, gold, mtpredictor, mtpredictor software, oil, quantitative easing, S&P, silver, stocks, trading, usd

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