As you might have guessed last night, the dollar received a big boost on the Dubai news and commodities have been inversely crushed. But most of the damage had already largely been done, and the bulls have come in to clean up the Holiday trimmings, erasing nearly half of the early losses. Volume is up significantly over earlier in the week in this abbreviated session.
However, price and VIX action aside (highs just under 26 vs. 20 yesterday), internals are still very weak and they will need to begin to follow through soon even though this gap fill attempt doesn't look to be over. Perhaps the declining five-day moving average will provide stronger resistance (about SPY $110.35).
Below you can see how the media is already deprecating the Dubai news in favor of the pre-slotted Black Friday drivel.
Merrill on September CPI
5 hours ago