Santa’s Sleigh

The S&P 500 has staged a very sharp, very rapid snapback rally after the Fed rate decision. It’s possible this could be the start of the highly anticipated Santa Claus rally.

S&P 500, daily bars

S&P 500, daily bars

S&P 500, 30 minute bars

S&P 500, 30 minute bars

S&P 500, 5 minute bars

S&P 500, 5 minute bars

It only remains to be seen that this move can develop into an orderly consistent trend channel that had the potential for follow through to the upside. That remains to be seen. Weakness in oil, geopolitical risks and economic deceleration in Europe, China and Japan all have the potential to send Santa’s sleigh right back to the north pole.

For now, though, we can sit back and enjoy the ride, wild as it may be. This is a great time seasonally to be long. Good luck out there.

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