The Santa Claus Rally starts today, marking the last five trading days of the year and the first two of the New Year.
Historically, NASDAQ and Russell 2000 lead the day-after-Christmas gains, advancing 72.2% of the time since 1988. S&P 500’s December strength continues as a key seasonal indicator, with its performance often hinting at the year ahead.
A missed rally can signal bearish markets.
...The holiday cheer continues as SPX nudges into a prior range, targeting 6100. Overnight futures show a slight dip, setting the stage for a rally.
Profits are rolling in from bullish trades, with managed positions recovering and new opportunities ahead.
Business as usual resumes in a stop-start market rhythm leading into the New Year.
...The SPX Income System delivered a perfect holiday trade! Using the “Tag ‘n Turn” setup, $12.00 was collected with a 7-DTE broken wing butterfly.
After breaking through its bullish trigger, SPX rallied, hitting the profit target in just 4 days. A failed bearish move on Friday paved the way for this bullish success.
Another fantastic win for the SPX Income System, adding to the streak of profitable trades in November and December.
...Yesterday’s analysis was spot on, with SPX delivering a narrow trading range day.
$ADD signals still point to bullish momentum heading into the official Santa Rally window.
With half a trading day left before Christmas, I’m holding my bullish stance and watching for pulse bar setups. Let’s wrap up the year strong and start the next one even stronger.
Happy Holidays—time for pigs in capes and plenty of cheer!
...Friday’s failed bear flag turned bullish quickly as SPX rallied through the bull trigger.
However, a late-day pullback hints at a pause for Monday. With wide Bollinger Bands contracting, expect consolidation during this shortened holiday week.
Bullish income swings are close to profit targets, and I’m waiting for clearer signals before jumping into the next trade.
...Last week’s bearish SPX breakout smashed through range targets, with Friday’s bear flag projecting a move down to 5730.
This selloff feels reminiscent of December 2018 but could be short-lived. If the bear flag breaks, the bull trigger is set at 5950. SPX Income Traders, playing both sides of the market, are well-positioned for gains no matter the direction.
...The Fed’s rate cuts, paired with fewer future cuts than expected, sent markets tumbling. SPX dropped 2.9%, breaking through range lows and initial breakout targets.
While the Dow hit a 10-session losing streak—the worst since 1974—these dramatic moves often signal overreactions. Markets may stabilize soon, but for now, I’m holding off on new trades while traveling, with a watchful eye on Friday.
...Yesterday’s SPX gap up quickly reversed into a gap down, keeping prices firmly stuck in the established range. I seized the opportunity to buy at range lows, initiating a promising income swing trade.
A move back to the 6100 range high could lead to a healthy and profitable exit.
The plan remains the same—watch for reversals or breakouts to determine the next steps.
Meanwhile, I’m enjoying Poland’s rich history, with today’s adventure taking me to the famous salt mines.
...SPX pushed off Friday’s range lows and is now testing range highs.
A breakout above the range could set up a bullish move, or we may see a retreat back inside the range.
With overnight futures hinting at a potential gap higher, this week is off to an exciting start.
Meanwhile, I’m trading from Krakow, Poland—an enchanting city filled with history, beauty, and emotion.
...Next week’s trading focuses on SPX’s well-defined sideways range.
With 4 key patterns unlocked, we’re eyeing range lows and highs for bullish reversals or bearish breakouts.
A “break-in” setup is also on the radar for moves back into the range.
Pulse bars will be the go-to signal for timing trades.
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