Bulls have every reason to break open the champagne tonight and toast their accomplishments.
TheS&P is on track for its best December performance in nearly two decades with the index closing higher in 17 out of the last 21 sessions.
As a result, the broad market is now trading at pre-Lehman levels; and is up about 13% for the year.
However with stocks teetering on either side of break even on the last day of trading investors weren’t sure what to make of the action.
Some think the market is consolidating ahead of the next move higher, while others argue that it’s completely out steam. Skeptics say when big money returns to the market in January a sell-off will quickly follow.
How should you position now? What should you be watching?
Instant Insights with the Fast Money traders
Pete Najarian leans bullish into the new year. “I think the grinding in the S&P is consolidation ahead of more upside.” In fact he thinks the S&P has 10% more upside. "The fact that we’re rallying in December is bullish in and of itself because it generates momentum into the near year."