The indices have been rounding off at resistance over the last couple of days, and the higher high on Friday will make it more difficult for the market to easily break that resistance zone. This is in line with Toni Hansen's expectations for a choppier market as the month progresses.

Toni Hansen is watching for a slightly higher high in the S&Ps and Dow on the weekly time frame to continue to create the conditions that would be favorable for a stronger price reversal and correction into the early half of 2008.

Heading into next week, Toni Hansen expects the market's upside action to resume, but on a much more muted scale than on Wednesday.

Should the S&Ps and Dow establish a very slightly higher high, Toni Hansen believes that the door then will be wide open for a much larger correction off highs into the early half of 2008.

Toni Hansen is leaning towards more upside on the 60-minute charts because of rounding lows.

Toni Hansen writes that the door is open for even more selling this week as Monday's breakdown follows through.

Regardless of whether or not the Fed will again slash rates in its December meeting, Toni Hansen is continuing to lean towards the likelihood of a larger market correction on the monthly time frame into the new year.

Toni Hansen belives that the market is still poised for a third bounce higher on the daily and weekly Dow and S&P 500.

Despite the strong showing on Tuesday, Toni Hansen does not expect the buying to be able to continue well into Wednesday.

Toni Hansen has been watching for the potential for the market to set up a third wave of buying in the S&Ps and Dow to slightly higher highs. That is going to now depend upon how the market continues to react to the current support level. As long as the upside momentum is strong, the scenario will hold.