Downside pressure continued to mount on the December E-mini S&P 500 overnight as traders continued to shed risky assets amid speculation of debt woes in the Euro Zone. Without major economic releases to follow and a Treasury Bond market to lean on because of the U.S. Veteran’s Day holiday, thin market conditions and low volume could lead to volatility.

The EUR USD has been on a tear since early Tuesday afternoon shortly after Federal Reserve policy makers gave further indications that they were ready to implement another round of money-creating stimulus.

December Treasury Bonds broke on Friday as investors shed safer assets in favor of higher-yielding risky assets. The main trend remained up on the daily chart while the market completed a 50% retracement of the 124’22 to 135’19 range. The first target was 130’17. The market tested 130’12.

The September E-mini S&P finished lower on Thursday. Although the low of the session was reached near the opening, buyers failed to produce enough interest to drive this market higher into the close. With the fundamental news still supporting a down slide, today’s early rally was most likely triggered by oversold short-term conditions.