The market closed the last full trading week of the year on a positive note, with the S&P 500 (SPX) closing above its 50-day moving average and finishing with modest week-to-date gains. 

Technology (XLK) names extended the late-week rally with solid participation from its major components. Micron (MU) continued its post earnings strength, and storage peers like SanDisk (SNDK) and Western Digital (WDC) advanced. Oracle (ORCL) was another solid performer after headlines that TikTok signed a deal to sell its U.S. unit to a group of investors. 

Santa Rally on The Way?

The “official” Santa Claus Rally starts on December 24th. Historically, the last two years were negative, but there has never been a third straight down Santa Claus rally. 

Market Sentiment

Equity sentiment, as tracked by Goldman (GS), spiked last week, and reached its highest level in about a year. Readings of +1.0 or higher have historically signaled stretched equity positioning.  

Today’s Session

Major indices are all looking to open the week higher.

Oil is moving higher, following the boarding of a 2nd oil tanker off the coast of Venezuela this weekend.

It’s a light week for economic data, except for tomorrow morning.