Into the trading week, (Dec 27- )

Even the ES futures have an “I’m out of the office”, note up before Tuesday’s trade (not open until 6AM). That pretty well sums up the thin trading environment going into the last week of ‘11, so will keep it short as everything written last week extends over to this week. 

After 35 SP handle rally last Tuesday, “In all, a perfect gift for longs to sell and/or to believe in Santa "ECB' Claus for a little longer”. The little longer carried on to the last 3 trading days as earmarks of window dressing became apparent Thursday and continued for another 100+pts DJIA day with SP moving into the logjam of resistance in 1260’s on Friday.  

Helping the cause is S&P seemingly delayingAAA resolution into ’12 and Washington politics cutting a deal of sorts delaying any potential negative market catalyst until 2012.

The only hurdle for even more upside remains the underperforming R2K (again on Friday). Clearly, the underlying group to watch for market direction.