Call it a Santa Claus rally, call it window dressing, call it portfolio manager benchmark chasing, call it manipulation, call it all of the above or whatever you like but stocks are clearly trying to levitate higher through year end.
During the holiday season it is hard to call a market as it seems like trading desks are half staffed and even the bears go into hibernation for a bit. After all it is winter.
That said the direction for stocks remains up. While common logic suggests a pullback should occur or a correction is needed stocks continue to climb the wall of worry and doubt. Until that wall is replaced by complacency, acceptance and over confidence stocks will likely continue to trend higher a bit longer.
Internals remain solid (not exceptional) however the new 52 week high list is expanding again, which is bullish.
We continue to expound the mantra - hold ‘em if you’re long ‘em. Just make sure you plan an exit strategy such as; trailing stops or strategic pruning. As much as we want to see the cracks in the foundation and not sound like a broken record for now there aren't any.
Below 1,085 remains the level to watch on the SP 500 short term level. Should we break that level we could sell off a bit. On the upside we do not see any major resistance in the SP 500 until 1,193.
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