The year is finally starting to wind down and after last week's brutal selloff, equities are finding some better footing this week. That comes despite a bit of a wobble after having seen the BOJ surprise with a policy tweak on Tuesday. S&P 500 futures are up another 0.2% on the day as the cash market shows a bounce off a key technical support on the week:

SPX

The 50.0 Fib retracement level of the recent upswing from October, seen at 3,796, is the line in the sand that is being drawn by buyers at the moment. However, any material upside rebound requires a push back above the 100-day moving average (red line) and that might be a yard too far - at least for now.

As we move towards the Christmas holidays and year-end closing, be wary of tax-loss selling flows as well. That could make it tricky to navigate through equities sentiment until we get to the turn of the year.

In any case, just pay attention to the technicals as that will provide some idea of how things might play out moving forward. At least for now, sellers are thwarted at the first attempted break lower after the double-top near 4,100. But they are still very much in control so long as buyers don't get back above the 100-day moving average as pointed above.