what to know on $ES before 2024

December 26, 2023

Hey traders!

Hope everyone had a wonderful Christmas yesterday. We are so thankful to have such an amazing community here at QuantVue.

Ok ok… let’s get into the final trading week of the year…

Impact Snapshot

  • Jobless Claims - Thursday

  • Pending Home Sales - Thursday

  • Chicago PMI - Friday

Market Evaluation

Markets kicked off the final week of 2023 on a quieter note after an impressive rally that put the US stock market within a striking distance of its record.

Equities edged higher amid low volume, following the S&P 500’s longest weekly run since 2017.

The widely recognized Santa Claus rally traditionally spans the final five trading sessions of the year and the initial two of the new year.

Historically, this trading window has demonstrated robust performance. Dating back to 1969, the S&P 500 has, on average, registered a 1.3% increase during this seven-day period.

No major economic releases this week and the likely absence of institutional activity and funds positioning in this market till next year will likely see low volumes for the remaining of the week.

Markets Breakdown

Last week on Tuesday the 19th after markets close, we’ve posted a Substack with our view of the market and it’s current situation.

The following day, market saw it’ biggest pullback of the last 3 months. This view remains the same as we approach the end of the year.

Be sure to check out the Markets Breakdown section of that post as we are not going to repeat the same view until any change in the market occurs to change it.

The market is now on the last week of the year. The week ahead has little to none economical reports able to affect the market in a major way and the absence of institutional activity will most definitely take a toll on the volume.

Meaningful breakouts needs volume to occur, that goes both ways.

Today’s market report we’ve posted here will monitor market’s ability to maintain activity within the balance area or look for a breakout from balance.

The most important level of this whole range that is likely to play a pivotal role is the 4736 which was the pullback low zone of the FOMC rally.

Hold bellow this level will likely see a more major downside continuation back into the prior multi-day balance.

ES

The targets we look for until NY close & Targets to pay attention Tomorrow:

  • Upside Levels: 4828/4851/4879

  • Downside Levels: 4787/4773/4757

That’s all we got for today’s brief.

If you find ANY sort of value in these Substack posts, all we ask is that you SHARE them with 1 (maybe 2) friends.

We’ll see you on Thursday!

-The QuantVue Team