Saturday, December 27, 2014

V is for Drifting Rally

The Market Trend Model ( maintained its positive bias after signalling a new uptrend at the close of the prior week.  The stock market's v-shaped rally appears to have hitched a ride on Santa's sleigh as the seasonal Santa Claus rally came to fruition as scheduled.

The Russell 2000 has lagged other major indices for the majority of 2014, but now this index is clearly outperforming with a +1.61% weekly gain compared to the Dow Jones Industrial Average with a +1.40% weekly gain and the Nasdaq-100 with a +0.69% weekly gain.

At this moment it appears the market may drift higher into the end of the year.