Typically you'll hear a lot of hype around a Santa Clause rally this time of year, but it's looking more like we'll get a Santa Clause slump. Volatility has been intense this week, just one week after the indexes managed to break their losing streaks, but that momentum didn't carry through.
The DOW dropped 532.20 points Friday or -1.5%, to 35,365.44. The S&P 500 fell -1.03% for a second day to 4,620.64, and the NASDAQ ended the session -0.07% lower at 15,169.68 after briefly trading in the green. At its session low, the NASDAQ had dropped -1.5%.
The three major indexes posted a negative week, with the NASDAQ being the biggest loser with a -3% loss, while the DOW and the S&P 500 slipped -1.68% and -1.94%, respectively.
Tighter monetary policy, the ongoing pandemic and, a quarterly event known as "quadruple witching" led to a losing week for the major averages. Quadruple Witching happens ad the end of a quarter with the expiration of stock options, index options, stock futures, and index futures.
Maybe it's time to cash in those profits for the year and sit back, relax and enjoy this time of year with the family. I know that's what I'm going to do.
Key Levels To Watch Next Week:
- S&P 500 (CME:SP500): 4,743.83
- Dow (INDEX:DJI): 35,970.99
- NASDAQ (NASDAQ:COMP): 16,212.23
- U.S. Dollar (ICE:DX): 95.75
- Gold (NYMEX:GC.G22): 1,791.00
- Crude Oil (NYMEX:CL.F22): 70.32
- Bitcoin (BITCOIN:BITSTAMPUSD): 60,090.55