Today's Trading Plan: Direction From Here

By Ryan Mallory of SharePlanner

Thursday, December 15, 2016 9:55 AM EDT

Technical Analysis:

The Federal Reserve raised interest rates yesterday by a quarter point. Initially, the S&P 500 (SPX) tried to rally on the news but quickly gave up its gains on the day to finish 0.8% down on the day.
SPX also managed to close below its 5-day moving average for the first time since 12/2 which was when the second leg of the Trump rally started.
Volume on SPDRs S&P 500 (SPY) increased for a third consecutive day and the largest volume reading since the two days after the election.
The Rising trend-line off of the November lows on SPX looks to be tested at some point in the near future. Today, that area is at 2234.
Dow Jones Industrial Average (DJI) rallied as high as 19,966 yesterday, but ultimately couldn't push through the 20,000 milestone and instead sold off.
For the fifth time in the last six days, the CBOE Market Volatility Index (VIX) rallied, but only 3.7% - not much considering the price action in the indices and the sell-off that followed. Even with the rally that unfolded in VIX yesterday, it hasn't moved all that much.
Small caps with the Russell 2000 (RUT) are showing the greatest amount of weakness over the past four days, while large caps continue to be the go-to option for traders.
Light Sweet Crude Oil Futures (/CL) looks to retreat for a third consecutive day and even move back below the $50 price level. As has been the case with oil lately, is for the market to only pay attention to it, when it is rallying.
SPX and the market as a whole is overbought on every time frame - and the potential for a pullback here looms large.
This time of year, people start anticipating a "Santa Rally" from the market but if you recall last year, that rally never came, in fact, the entire rally was marked by a great deal of selling.