Last week, the FED raised the Fed Fund Rate for the first time in more than 7 years, and the market around the globe rallied off that news until it got back to NY the follow day, then a funny thing happened, the market started to fall. It gave up all the gains from the rate hike rally and more, and the SP500 had an 83 point swing last week and ended the week at 2005.55, a loss of 6.83 points or 0.34% from previous week. As Christmas holidays approaching, market participants are still waiting for Santa to show up and sprinkle some holiday cheers to get the end of the year rally going. Looking at the recent internals, there appears to be some divergence that could be pointing to a Santa's Rally to commence very shortly, just in time before the holiday break.
In this video, a review of the SP500 and its ETF, SPY to determine where it might go if Santa decided to stop by to spread the holiday cheers, and where it could drop to if Santa decided to bypass Wall Street this year. I hope you have been nice, and if Santa does not drop by Wall Street, at least it will stop by at your house. Happy Holidays!
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