S&P 500
Dow Jones flirting with the 30k level continues unabated. Ever since it reached the level shortly after Election Day on November 3rd, it did not let it go anymore. Indeed, the moves higher were not strong enough to trigger a bigger rally. Also, most of the bounces happened after hours or when the cash market was closed.
This happened the other day too. The futures opened on Monday with a gap higher generated by the Brexit negotiations continuing, and then the selling took place during the market hours. Once those were behind, futures started to climb back slowly but surely.
All 2020 this market behavior characterized the Dow Jones and other stock market indices. Can we say that the Dow Jones prepares for the traditional Santa Rally? We can say that the rally already took place if we consider the strong rally from the start of November? In other words, if Dow Jones manages to close the year around current levels, there’s no need for the Santa rally anymore.
The chart below is straight forward – bulls step in on every market dip below the 30k level while the series of higher lows remains intact. On the other hand, bears sell on every new marginal high for a move back below the 30k level.
