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The next downleg begins. Overall, the large point loss in the indices was offset by the lighter volume. It will be important converged 20-day and 50-day MAs hold as support if the Santa rally is to continue - any decisive break on volume would likely coincide with a counter-break of the ascending triangles which have played out quite well (so far).

One thing that will have bulls worried is the VIX rally just shy from its 200-day moving average support; there could be more to this decline than a simple support test. However, the double top neckline will be the first resistance test for the VIX. Look to the break of the bearish divergence in the RSI as the first sign of a rally in the VIX.