After Christmas

Outlook 12/26: Stock futures fell in morning trading Thursday as the market is set to give back some of the gains during the holiday week. Investors were enthusiastic about the so-called Santa Claus rally, which occurs in the last five trading days of the year and the first two in January. Since 1950, the SP500 has generated an average return of 1.3% during this period. Thursday marks the second day of the Santa rally. It’s a sleepy time of year. The institutions aren’t really trading. It’s a little bit more retail driven. So what happens at the end of the year is not necessarily an indicator for how January and February.

ESH25 (MAR2025): YVAH 6099 YPOC 6078 YVAL 6062 GAP 6099

/ES Plan: Last session market closed bullish (PBT 6113), but overnight looks more bearish, moving within previous value/range, so these're the opening and initial balance options for current session:

A) If market moves above YPOC 6078 with bullish internals, buy YVAH-GAP 6099 PBT 6113 and FOMC SoC 6136 magnet.

B) If market moves below YPOC 6078 with bearish internals, sell towards YVAL-HVE 6062 and HVE-GAP 6038 magnet.

Note: It's a holiday week. The institutions aren’t really trading. Volume will be lower than usual but "Santa Rally" is still in play. Market needs an excess high to call an end to the current bullish auction.

Market Movers

11:00 EIA Petroleum Inventories
1:00 PM 7-Year Note Auction

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