After taking a few days away from the grind, I'm happy to be back. I've had a great holiday season so far with family and friends and trust you have as well. 

The light volume gyrations in the markets have continued unabated as expected. The result is just more sideways consolidation that will soon be resolved with a massive breakout. The important question is, of course, which direction shall it break?

I've got to tell you that it really could break in either direction. The main thing for traders is to be on the right side of whichever direction that is. Don't make the mistake of thinking you already know what that direction is and dig your heels in. In fact, you really shouldn't care which direction it chooses, only whether you're on the right side of the move.

The downside breakout level is 850 in my book and the upside breakout is about 920. That makes it pretty simple, except for one thing. Everyone's looking at those same levels. That makes it a little too obvious. As a result I believe the market could throw some type of monkey wrench into the move.
 
How about a false breakout in one direction and then a complete 180 the other way. That's what I'd be careful of. It could happen very easily. There are lots of sell orders below 850 and lots of buy orders above 920. And remember, a false breakout could happen in either direction so stay alert.

The market should reveal itself within a few more trading days, perhaps by the end of next week. Regardless of when it happens, enjoy this quiet before the storm.