This will be a tough one. What will the trading day look like?
Given that we are already up almost 200 points on the Dow Jones Industrial Average for the week, and that is gone at the open, my first inclination would be to say that rallies will be tough to sustain because there will be selling right into it. It would be tough to argue for a rally going into the close.
Here's the big problem: bullishness. Bullishness that the "fiscal cliff" would be resolved; bullish because this is a seasonably up time of the year. Complacency has been very high. I noted on Wednesday that hedge funds are the most exposed to the equity market they have been since 2006, according to a Business Insider graph.
Everyone presumed we would have a march to glory and end a good year on a big up note. That is now being called into question.