Every year the same question about the christmas rally, its not if were going to get the rally its always a question of how high the market is going to rally. Funny thing is the market is already up over 10% from just a few months ago and of course this is never enough for the greedy bulls, they always want more. So if this is the case I think the market rallies an easy 10% over the next 4 weeks just to satisfy everyone's craving for risk free gains. Just keep buying the dips, today was an example of how things can be propped up in only a couple of hours, from nearly selling off over 1.5% to being virtually flat on the day. Tonight asia stocks are sinking the nikkei is back below 10k and the futures are somewhat lower in the US but I wouldnt worry, by tomorrow morning everything will be bright green just like the xmas tree in nyc!!!! More risk free gains to follow tomorrow and the rest of the month, keep buying those fake pullbacks.
I don't ever remember seeing so many days where the dow is down and starting around noon climbs up to erase the mornings price drop. Maybe this means there is going to be a rally coming up.
Bubble ben and friends are using magic on a daily basis to keep everything steady. Sell the markets in the am and pump it higher into the close, happened a few times the last week.
General rule of the markets is that dumb money comes in in the morning, smart money in the afternoon. So yes, on the evidence, odds are tilted towards a rally in December. Since for most people their time horizons go out more than one month, it's probably also accumulation ahead of January.