Weekly Market Outlook: Bulls in Control as Holiday Optimism Prevails, Crypto ETF Anticipation Grows

Not much has changed coming off of a slow holiday week. This week we will get important data coming out on the state of the economy so I expect a little more volatility. However, Black Friday has told me all I need to know about the current environment. More record spending in the economy.

The overall sentiment has become increasingly bullish. Bulls think the market is going to go straight up while sidelined people want a pullback. I continue to reiterate that if there is a pullback it will likely be short lived and shallow. Again, the seasonality and cycles suggest that we are in a very strong uptrend here that can last into January.

When we look the S&P500 there’s not much new to report.

If we do see a pullback I would be looking for the 4420 level to be tested sometime late this week or early next week followed by some sideways consolidation into mid December at the latest. Then the popular Santa Clause rally narrative should start to take hold later into December.

Same thing looking at the Nasdaq. Here were are less than 5% away from a new all time high. Something we had been predicting since September when the market was at its ugliest.

With crypto it gets even more interesting. Each day the anticipation of the ETF announcement is growing. There is all kinds of speculation about what it will do to prices and if it is in fact, priced in. When we analyze the pattern of BTC and the time period we are in, we can see some very powerful similarities.