The Santa rally is followed by the January effect, which is the pull of money into the market for the new year. The two now run together and form a kind of "holiday cocktail," stirring up gains for the market, Luschini said.
Markets are closed Wednesday for the Christmas holiday but open for business as usual Thursday.
The only economic data for the rest of the week is Thursday's weekly jobless claims, but traders will also be on the lookout for any reports on how retail sales have fared.
Barclays economist Michael Gapin expects to see weekly jobless claims of 350,000, down from last week's 379,000, a nine-month high and the second straight elevated week.
"We think we'll retrace some of that move higher," he said, adding that he expects it to move back to its previous level. "There's a lot of noise in that series."
(Read more: Santa gives market gift of strong economic data)
Consumer spending gained 0.5 percent in November.
"We're getting further away from the tax rate increases last year, and we just have modest growth in income and further employment. We put another 200,000 people on the payrolls, and I think the wealth effect is contributing," Gapin said.
"All these things combined will move ... real consumer spending to 2.5 percent. It's been roughly in the 2 percent range in the last few years," he said.
The durable goods report was also a positive, though some economists point out that business spending could be driven by two expiring tax breaks on capital expenditures, Gapin said.
Durable goods were up 3.5 percent, with the core orders rising 4.5 percent on the month. Those orders correlate to business spending.
Gapin said GDP was tracking at 2.3 percent for the third quarter as of last week, above his forecast of 1.5 percent.
—By CNBC's Patti Domm. Follow here on Twitter