We're stuck in a tight range with a lot of volatility as we try to break out.

I think in the first quarter we'll fall back into the 1210 to 1246 range on the S&P 500.

The rand is still stuck in a range, but with a firmer bias. This has been a function of the renewed rise in precious metals prices. The rand is once again making use of its commodity status.

I think the rise can continue a bit longer. We're going to hit some resistance soon from a technical point of view, but I venture to say that this advance could go on for a few more days.

When commodity prices and energy prices weaken, technology stocks usually pick up the leadership and strengthen because they can move inversely to those two areas.

We are at a major crossroads here. If we are unable to break out of this trading range to the upside soon, then there is a danger that we could quickly slide back down again to the lows.