On a FED day as the Federal Reserve held firm on low interest rates, it appears the annual Santa Claus rally may have quietly slipped into view despite the tight trading of the past few days.
Possibly it’s even set up a for a fast move by the tight trading.
Appropriate timing, I guess, since it’s hard to fathom this market continuing to rally on anything other than the FED pump, pump, pump…
Regardless, the NYMO put in a low above a low today (see the chart below), to go along with the important NYSI’s rise for the past four days. That completes the breadth pattern that is a most reliable trigger for a sustained up swing.
Since the last time the NYMO put in a low above a low on October 8th, SPY has rallied seven percent.
I would venture to suggest about the only thing that could abort the rally would be the Tweeter in chief scattering the trade-talk sticks again. Reportedly he is meeting tomorrow with advisors to discuss the proposed Dec 15th tariffs against China. Since when has he listened to advisors? So anything can happen.
In the meantime, one has to respect the signals and be long, and buying dips, until further notice.