If you ask the markets, Santa Clause is still on the way, and this rally is still in play.
The technical trends are pretty straight-forward: economic data remains in-line with expectations, and Fed policy is unchanged. It’s a recipe for more of the same. And ‘the same’ happens to be a pretty low-volatility climb higher for the major indexes.
While this run has been exceeded initial expectations, the behavior of things looks like this week may continue higher.
Mechanically, we could see the top of 2019 this week. This is because both Christmas and New Year’s fall on Wednesdays. That means this is really the last ‘regular’ trading week of the year. After that, holidays monkey with stuff.
So enjoy for now. Q1-2020 is bringing not only new earnings, but new speculation as we head into an election year during the greatest bull market in a generation.
For the week, look for support around 3117, with resistance around 3179… if there is any resistance. The only reason the market hasn’t pushed higher is because it’s already at all-time highs.
C’mon Santa Claus Rally!
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