If you've been trading the approximate 150 point range in the S&P 500, then you've done ok, but that trade is getting a little crowded.

This week ended with another retest of the October lows, which were briefly broken through intraday on Thursday only to trigger a huge upside move on good volume. Though selling volume has abated, a bearish triangle is possibly forming as the spikes to the upper end of the range have trended lower. If this continues it will put more pressure on that support.

A one-day 10% rally for no fundamental reason doesn't fill me with optimism. It means that the price action is fueled by technicals and a 10% selloff if that support is seriously broken.

Anyway, the holidays are coming up which means fewer market participants. Less volume means less selling pressure and we're down so much on the year already that I can't see the wisdom in anything but really short shorts. This should translate into lower volatility.