Outlook 12/27: Trading volume should continue to be light as many investors continue to enjoy the holiday season. Though, we are in the midst of the "Santa Claus Rally", which covers the final five days of the trading year and the first two of the next. During this seven-day period, the SP500 has gained an average of 1.35%, the second-best among all seven-day periods possible during a year.
/ES Value: YVAH 2687 YPOC 2686 YVAL 2685
/ES Plan: Yesterday market closed balanced and overnight inventory is bullish, moving above yesterday's value, so we've these options:
A) If market remains above YVAH-LIS 2687 with bullish internals, try to be a buyer leaning on 2687-2688 towards LVN 2693 ATH 2698 and PBT 2702. Failure to breakdown ONL early is a signal of a strength.
B) If market starts to move below YVAH-LIS 2687 with bearish internals, try to be a seller leaning on 2687-2686 towards GAP 2681.75 and LVNs 2679-2675. Failure to take out ONH early is a signal of weakness.
Note: Last record high doesn't show decent excess on it. Usually, market needs an excess high to call an end to the current bullish auction. This lack of excess increases the odds that, soon or later, the all time high (ATH 2698) will be revisited. "Santa Claus Rally" is still on the radar.
Today's Economic Calendar
10:00 AM Consumer Confidence
10:00 AM Pending Home Sales
11:30 AM 2-Year Note Auction
01:00 PM 5-Year Note Auction
Disclaimer: All information on this outlook is for educational purposes only and is not intended to provide financial advice.
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