The market is at a tricky juncture in the short term as I can make both bull and bear cases. The short term bear case primarily hinges on the fact that we will be overbought at the end of today, although it won't be a great reading. A lot of the remaining bears are likely being squeezed out today as they have been looking at this EU summit as a catalyst and it has failed. Nothing has really changed in Europe to merit optimism and Europe should continue to be a drag.
The bull case is that with the big, bad event out of the way we can finally enjoy the positive seasonality. The Santa Claus rally could be exacerbated by the fact that so many are under invested. The supply/demand equation greatly favors the bulls as corporations are aggressively repurchasing shares while the window for IPOs and secondaries closes towards the end of the year.