<p style=““ class=“text-align-justify“>The holiday mood will continue after the Christmas break but that might not mean a pause in the action for stocks ahead of the new year. I’ve highlighted the technical predicament for the S&P 500 for a while now, ever since before we got to the Fed meeting earlier this month <a target=“_blank“ href=“https://www.forexlive.com/news/it-may-all-rest-on-wall-streets-shoulders-when-all-is-said-and-done-20221214/“ target=“_blank“ rel=“follow“>here</a>.</p><p style=““ class=“text-align-justify“>And that story is continuing to play out for now, with the double-top pattern near 4,100 and key trendline resistance (white line) for the year providing a strong set of technical consideration for sellers to take charge. That resulted in a break back below the 100-day moving average (red line) before the selloff was only halted by the 50.0 Fib retracement level of the recent swing move higher, seen at 3,796.</p><p style=““ class=“text-align-justify“>That is a key level to watch over the coming days, despite the fact that we are likely to observe thinner market conditions. Below that will be the measured target of the double-top pattern, seen at roughly 3,760, and then the November low at 3,698.</p><p style=““ class=“text-align-justify“>There might not have been a Santa Claus rally this year for stocks but I reckon investors are probably happy enough to not have been dealt another severe blow on the charts before Christmas.</p><p style=““ class=“text-align-justify“>But as we approach the turn of the year, things could get ugly if we do see a break of the key levels highlighted above.</p>

This article was written by Justin Low at www.forexlive.com.