In summary, it looks like things are going to be very interesting in the new year. For now, it is necessary to remain bullish, but alert.

The market is strong, as evidenced by new all-time highs in all four major indices this past week. Since price action is the most important indicator, the overall trend remains bullish as long as SP-500 holds above support.

There is a short-term support at 3725. Below that, there are two important support areas, the first is at 3630-3650, and the second is at 3550.

So, what could possibly go wrong? Well, there are plenty of sell signals that could be setting up.

"Trust your gut."

Don’t do what you know on a gut level to be the wrong thing to do. Don’t stay when you know you should go or go when you know you should stay. Don’t fight when you should hold steady or hold steady when you should fight. Don’t focus on the short-term fun instead of the long-term fall out. Don’t surrender all your joy for an idea you used to have about yourself that isn’t true anymore. Don’t seek joy at all costs.

I know it’s hard to know what to do when you have a conflicting set of emotions and desires, but it’s not as hard as we pretend it is. Saying it’s hard is ultimately a justification to do whatever seems like the easiest thing to do—have the affair, stay at that horrible job, end a friendship over a slight, keep loving someone who treats you terribly. I don’t think there’s a single dumbass thing I’ve done in my adult life that I didn’t know was a dumbass thing to do while I was doing it. Even when I justified it to myself—as I did every damn time—the truest part of me knew I was doing the wrong thing. Always.

As the years pass, I’m learning how to better trust my gut and not do the wrong thing, but every so often I get a harsh reminder that I’ve still got work to do.

In summary, there are lots of crosscurrents right now. The SP-500 support area at 3630- 3650 has held so far. The SP-500 chart remains bullish and will stay bullish until it breaks 3550 area.

Violent downswings happening into Monday morning's stock market opening. We'll see what happens from here on. Lots of news to fuel the fire. Staying cautious until this sort itself out.

The major indices - $SPX, $NDX, $DJX, and $RUT - are all at new all-time intraday and closing highs now. Clearly, this market has momentum.

We have to remember that markets look the best at their high and the worst at their low. The market is overbought, but overbought doesn't mean "sell".

 Both 200-day and 50-day moving averages are rising. Uptrend continues for now.

At issue now is whether we are witnessing another mild, one-off dip or, instead, the beginning of a larger market correction.

In summary, the market is overbought and getting more so almost every day.

Over the past three days, SP-500 finally managed to break out to new all-time closing and intraday highs. Thus, the SP-500 chart is bullish, as there is no classical resistance -- by definition -- when it is at all-time highs.

The reason people don’t make big money in markets is because they chicken out too soon. The reason people blow up their accounts is because they don’t chicken out fast enough.

 "The secret to winning is learning how to lose.

That is, learning to bounce back from failure and disappointment—undeterred—and continuing to steadily march toward your potential.

Your response to failure determines your capacity for success."