DOWNGRADES

Futures are higher in the premarket as the European and Asian markets trade up. The Bank of England cut their key rates to 5.5%.

MS and GS both downgraded to Neutral from Buy at MER; seems like these stocks get hit with downgrades about every day. Hopefully lots of questions get answered on December 18 when GS has its earnings release.

Oil trading down another buck to $86.5 and gold down $10 to $790 area.

Technically, lots of resistance above at the 1,490/1,500 SPX area as this was the level we shot through on September 18, the first rate cut day. It has acted as resistance since November 7, when we lost over 40 points and I am looking for this rally to end near these levels in the short term. The 200 SMA is also here at 1,484 which we barely got through yesterday. Hopefully another push higher into year end to the 1,525 area.