As we come to the end of another trading year, the only questions left to answer are………… where is Santa and his rally? Will he deliver once again, albeit rather later than usual.
And from early morning trading, it seems as though he has repaired his sled and is now making up for lost time, with equity markets rising strongly, and the YM emini opening the session gapped up through the 25,800 region and now breaking above the 26,000 as we move firmly away from the volume point of control in the 25,300 region. Volumes remain largely supportive, and it’s encouraging to see the trend monitor transition to blue on the daily chart. The key price resistance ahead is in the 26,200 region denoted with the red dashed line of the accumulation and distribution indicator, and the point at which the rally of November ran out of steam. So an important region and if this is breached will then provide a solid platform of support for a further run higher. Immediately above this level at 26,200 is a low volume node, so little in the way of volume resistance until we reach the 26,400 area.
So plenty of good cheer on the horizon for a positive end to the trading year courtesy of Santa, and no doubt one longer term investors will be delighted to see. So an early Xmas present following the volatile swings of earlier in the year as the VIX finally calms and moves lower to trade at 18.07 at time of writing.
By Anna Coulling
Charts from NinjaTrader
Indicators from Quantum Trading
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