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So Much for the Santa Claus Rally

Posted 12/21/2018 9:03AM CT | Bill Dixon

Death, Taxes, Santa Claus rally.  Well, it appears one of those isn’t quite as certain as we have become accustomed to.  The December e-mini S&P printed it’s high for the month on December 3rd (the first trading day of the month).  It had appeared that we double bottomed on 11/23 and the seasonal rally was back on.  We saw six straight days of higher trading, ultimately topping out at 2819.  At one point yesterday, a mere thirteen trading sessions later, we were 337.50 off of that high print.  The low print of 2441.50 was the lowest seen since August 28th, 2017.  Despite all the negatives, we did manage to close the session up at 2487.75.  The recovery triggered a turn higher in the McClellan Oscillator, which is usually a very good indicator when it comes to picking bottoms in drawn out selloffs on the daily e-mini S&P chart.  Stochastics appear to be nearing a cross, but the MACD still projects lower prices. 

Markets have abbreviated trading hours on Monday, and they’re closed on Tuesday.

E-Mini S&P 500 Mar ’19 Daily

E-Mini S&P 500 Mar '19 Daily Chart

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Bill Dixon

Senior Market Strategist
Bill began his career working with a firm of technical commodity traders specializing in the treasury and metal markets. In 2006 he moved over to Lind-Waldock as a broker. Bill joined RJO Futures in 2011.
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