Wednesday, 6 December 2017

Markets fall but may be set-up for Santa rally

Markets fell on Tuesday.

The S&P 500 fell 0.4 percent, the STOXX Europe 600 fell 0.2 percent and the Nikkei 225 fell 0.2 percent.

Despite the S&P 500 falling for the third consecutive session, some analysts remain hopeful that the rally will resume.

Quincy Krosby, chief market strategist at Prudential Financial, said that “if we were to get a slight pullback, it would be just normal and set us up for a Santa rally in a few weeks”.

“When you have a reversal like you had [Monday] traditionally you have anywhere from two to seven choppy trading days after it,” said Art Cashin, director of floor operations at UBS.

“Around the first two weeks of December, when you look historically at the seasonality, there is a mild bout of weakness in usually the first 10 days of December,” said Todd Sohn, technical analyst with Strategas Research. “Then you get the rally after that.”

“December is usually positive for stocks,” said Oppenheimer technician Ari Wald. “We're not expecting a big pullback.”

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