Santa Rally Driving Stocks Higher
Daily Charts
As we head into the last week of the year, the US large-cap indexes have momentum as a tailwind. Below are the daily charts of the US30 (left), SPX500 (middle), and the NAS100 (right). All three are bullish and in their respective areas of strength, between the upper blue and red bands. Moreover, their stochastics are all above 80, denoting strong upwards momentum. The "Santa Rally" seems well and truly on its way. In this regard, the longer that their stochastics maintain these positions, the greater the likelihood that this momentum translates into further price gains.
Past Performance: Past Performance is not an indicator of future results.
Hourly Charts
The hourly charts show similar. All three indexes are bullish pre-market open. Each stochastic is above 80 and has been maintaining those levels since the start of the week (aqua rectangles). If this continues, it will support the "Santa Rally." However, if the indicators drop below 80, bullish momentum may have started to wane. It is also worth mentioning that this week is thinner in volume due to the holiday season. This can have an impact on the chart candlesticks.
Past Performance: Past Performance is not an indicator of future results.
Featured Image by Gino Crescoli from Pixabay
Russell Shor
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.
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