The S&P500 index topped out the week near a new all-time high.
The index closed on Friday at 3729, marking a record high close. This comes as investors continue to speculate on the Congress stimulus bill.
With the S&P500 index near an all-time peak, it marks a remarkable journey for the equity index which has seen a lot of turmoil this past year.
The biggest question on everyone’s mind is whether the annual Santa Claus rally will ensue.
While in the past, the rally has come after a pullback, this time, the S&P500 index is already topping out higher. Thus, a Santa rally could see even further highs coming up before the end of the year.
For the moment, the S&P500 index is well supported to the downside.
Initial support can now be seen near the 3674 level.
If this support is lost, then the index could fall toward the 3588 level next. This will also see a confluence with the 50-day moving average.
The VIX index is also relatively low and could add some weight to the view of further upside for the S&P500 index.