Stocks could see a pullback in the New Year, but for now analysts say the market could ride the Santa rally higher into year end as traders look forward to Dow 20,000.
"There's a lot of window dressing that goes on, and portfolio managers that have to make up for the fact that they underestimated the rally since basically Brexit," said Paul Christopher, global market strategist at Wells Fargo Investment Institute. "Window dressing, Santa Claus rally. Call it what you will. This reflation move is real."
Stocks ended the past week flattish, but the Dow was higher for a sixth straight week since the election. It's been a clear winner in the Trump trade, with financials outperforming and industrials picking up momentum. The Dow was up 0.44 percent for the week, ending at 19,843.41.