The Standard and Poors 500 index (SPX) closed today at 5997, up 59 points or 1.0%. SPX opened the week at 5782, gaining 3.7% for the week. Trading volume ran near the 50-day moving average (dma) all week.

VIX, the volatility index for the S&P 500 options, opened the week at 21.2% and closed today at 16.0%, down almost twenty five percent today.

I track the Russell 2000 index with the IWM ETF, which closed today at 224.4, up 3.3 points or 1.5% on the day. IWM opened the week at 220.7 for a weekly gain of 1.7%. IWM trading volume ran close to the 50 dma this week.

The NASDAQ Composite index closed today at 19,630, up 292 points or +1.5%. NASDAQ opened the week at 18,904, setting up a strong weekly gain of 3.8%. NASDAQ’s trading volume ran below the 50 dma most of the week, jumping up a bit today. 

The last five trading days of December and the first two days of January have become known as the Santa Claus rally. Unfortunately, Santa didn’t come to Wall Street this year (down 0.7%).

The Stock Trader’s Almanac also tracks the first five days of January trading as a forecast for the year ahead. Positive gains for the first five days of January have preceded a positive year for the S&P 500 index 83% of the time. the first five days of January trading came in at +0.6% this year.



Now we wait for the January Barometer, which tracks the full month’s trading gain or loss. A positive January Barometer has predicted a positive S&P 500 gain with 73% accuracy.

I have been frustrated in my trading the markets since the highs in early December – many false starts and quick turnarounds, shaking me out of trades. This week's gains give me some hope for the new year.