This is the last full trading week of 2019. It may also be the last big push of the year for the markets to move higher.
If futures markets are any indication, there should be a pop Monday morning. This may create additional momentum for the week, pushing the SPX up over 3200.
Given the unusual holiday schedule (with both Christmas and New Year’s on Wednesday), this may very well be the high-water mark for the year. Still, as far as the calendar YTD performance goes, it’s been a heck of a year already.
There really is no ‘resistance’ on the upside right now. With markets essentially at all-time highs, the question is just how high can things go?
And things may go higher than we thought. With trade war talk softening, some of the pricing expectations may be off. IF — and it’s still if at this point — the trade war is going to soften, earnings expectations could benefit. That could mean this bull has room to run. 2020 may be an interesting year…
As far as support goes, around 3130 for the SPX. If this level is breached there may be some additional downside. Odds are portfolio managers are trying to sew up their bonuses for the year, so it doesn’t seem terribly likely we’ll have the bottom fall out of the market.
So while there is never a ‘known’ future for the markets, the set-up looks pretty good. It would take a major shift in market expectations to really throw a wrench in this thing. Folks seem to be asking how much higher this market goes rather when will the next drop happen. So grab some eggnog and cross your fingers – Santa Claus is coming to town 🙂
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