Lance Roberts (realinvestmentadvice.com) wrote this week to expect a pullback. I agree, at least for the Mega Caps and NASDAQ stars. However, in the reshuffling process, expect more troops to come on the field and take leadership from the generals.
As the month ends and the Best Month (December) awaits, expect profit taking and repositioning for the next phase on the rally……. A broadening out that would fit with historical seasonal patterns. The seasonality surrounding the November to April period is well known. Ditto for the Presidential cycle. However, in recent years the Santa rally has moved up to December 15th and has shown a pause close to month end to allow tax loss stragglers to exit.
Given the robust November performance, we feel this is the most likely course of action, a decent, but possibly muted Santa Claus rally. The next important period will be the first 5 days of January and the full month of January performance.