The S&P 500 is near its 50% retracement level, measured from the low to high point of the current market trend. For those not familiar with retracements, here is a brief explanation from Investopedia:
The Fibonacci retracement is the potential retracement of a financial asset’s original move in price. Fibonacci retracements use horizontal lines to indicate areas of support or resistance at the key Fibonacci levels before it continues in the original direction. These levels are created by drawing a trendline between two extreme points and then dividing the vertical distance by the key Fibonacci ratios of 23.6%, 38.2%, 50%, 61.8% and 100%.
In addition, the day before and after Thanksgiving are light in trading volume – which tends to be bullish for the market. Watch the 50% retracement level for a short bounce during this time. However, with all the bad news coming out of Europe, any short term bounce to the upside will probably be short lived.