Will there be a Santa Claus rally? S&P 500 is showing signs there may not be
BTIG chief market technician Jonathan Krinsky said that the S&P 500 is trying to hold above its 50-day moving average of about 6,767.
TL;DR
- The S&P 500 is attempting to stay above its 50-day moving average of 6,767.
- The index closed at 6,800 but hit an intraday low of 6,760.
- The S&P 500 has not made a new intraday high since October 29th.
- The index is down 0.7% in December, a month that historically sees an average gain of 1.4%.
- The Santa Claus rally, typically the last five trading days of December and the first two of January, sees an average S&P 500 gain of 1.2%.
- Failure of the Santa Claus rally could precede bear markets or opportunities to buy stocks at lower prices later in the year.