S&P 500 ready for Santa Rally

he S&P 500 closed lower by 1.64% on the day to 2026.14.  Those who write headlines are blaming the fall on falling energy prices but there is another possibility for why we fell.

After the double top (marked in blue above) in the S&P broke 2050, a pattern target of 2021 was triggered.  Today’s low of 2024.26 was only three points above this level.  Therefore, some additional downside to meet this target is possible.  However, the pattern target is also a confluence zone with the 23.6% retracement level and a bullish backtest of the September highs.  This is the level technicians will want to see the market hold.

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