The Santa Claus Rally in the stock market has typically been defined as a rally that occurs between Christmas and New Year’s Day. Well that didn’t happen this year or last year or the year before.
In December 2014 the S&P 500 (SPX) was down 1.1% then chopped up and down in January ending the month down 3.1%.
In December 2015 the SPX was down .84% then got whacked pretty good in January ending down 5.1%. (at one point it was down 11.3%)
So now we have another failed Santa Claus Rally with the SPX down 1.1%. What will January bring?
A correction is already underway so watching closely to see how it develops. There is a lot of bullishness out there so I am more than a little wary. This bull move, Primary Wave 5 of Cycle Wave V has been underway now for 7 years and 10 months.
In today’s brief market video I look at the SPX and talk about the wave structure of Primary Wave 5. We are in the 5th and final Intermediate wave within Primary Wave 5. I also briefly check the VIX and the Semiconductor ETF (SMH).