In the past trading week, the markets started quietly, preparing for the holiday break, but then experienced unexpected volatility. Monday and Tuesday showed positive market trends, nearing all-time highs, but Wednesday brought significant volatility, setting the tone for the rest of the week. This week, markets will be closed on Monday for Christmas.

While believing in Santa may seem to be a whim of childhood fantasy, there's a real belief in the Santa Claus Rally, beginning five days before the year's end and continuing two days into January. Since the 1950s, it tends to bring positive market movements, averaging a 1.3% gain. Despite being a moderate gain, there's an 80% chance of this rally occurring, yet caution is always advised as markets can be unpredictable.

Economic data includes housing indicators, such as the S&P Case-Shiller Home Price Index and HPI data on Tuesday. Additionally, Thursday will see multiple announcements like unemployment claims, goods trade balance, and inventories.

Due to the holiday week, expect lower trading volumes, potentially leading to extreme volatility. Wishing everyone a joyful holiday season, and we'll discuss year-end market insights in the next session.

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