For the most part, this December has unfolded in rather typical seasonal fashion. The market started the month off with solid gains and continued to rally through the fourth trading day before turning somewhat mixed. Russell 2000 and NASDAQ advanced an additional two trading days while DJIA, S&P 500 and Russell 1000 see-sawed essentially sideways until yesterday, the seventh trading day of December.

Currently the major indexes are navigating the often-dull period that has historically begun around the fourth trading day of the month through the eighth. Afterwards, later this week into early next week, another patch of weakness is possible. Then right around mid-month, the rally that began in at the beginning of November, is likely to resume. The resumption could be bumpy but once quarterly options expiration passes our Santa Claus Rally will begin on the open of trading on December 24. Since 1969, S&P 500 has enjoyed an average gain of 1.3% during the Santa Claus Rally that spans the last five trading days of this year and the first two trading days of next year.