Holiday Markets Set Up a Santa Rally

As we wrap up Friday, November 21st, the market is shifting into its usual Thanksgiving-week slowdown. Lighter volume and a “holiday feel” are setting in, but don’t mistake that for a lack of opportunity—this week’s price action is already giving us clues about what’s coming next.

Before we jump in, a quick reminder: Trading involves risk. Only trade with money you can afford to lose.

Support, Resistance & a Critical Retest

On the E-Mini S&P 500 daily chart, the market dipped into a key support area, retesting the exact level of a previous major low. The reaction? A clean bounce and a reversal today—classic price action.

Markets naturally revisit previous highs and lows, and this week was no different:

• Strong retest of a significant low
• Buyers stepped in
• Momentum shifted intraday

While the market could dip slightly again, the overall structure hints that something bigger may be forming.

Is the Santa Claus Rally Setting Up Early?

As we head into the final stretch of the year, the seasonal Santa Claus Rally becomes a major theme—and this year’s chart suggests the market may be preparing for exactly that.

The key level to watch:
👉 6737–6740

A close above this zone would likely signal:

• Sellers flushed out
• Trend momentum shifting upward
• A run toward the 7,000 level becoming increasingly probable

It may not happen next week, but the price action is aligning with the typical year-end bullish pattern.

ATR Spike = Huge Opportunity for Day Traders

One standout signal this week? The Average True Range (ATR) is hovering around 140 points, which means the market is producing large, directional moves.

High ATR days typically bring:

• Strong trends
• Large pushes with follow-through
• Less choppy, indecisive price action

Expect Monday and Tuesday to continue offering 100+ point ranges, giving day traders plenty of room to work with.

Sonic System & Big Range Days: A Powerful Combo

Large ranges allow systems like the Sonic System to truly shine. On big-trend days, you don’t get the constant long-short flip. Instead, you typically see:

• One strong push
• Multiple confirmations
• Clean entries
• Large profit potential

Examples from the chart:

• Some moves stretched over $2,000+
• Even targeting just $400–$500 per trade can produce a $1,000 day with only a few setups

This is the advantage of trading during high-range sessions: clearer structure and smoother trades.

Thanksgiving Week Trading Plan

Here’s the mindset heading into next week:

✔ Watch for a close above 6737–6740

This could trigger the early stages of a Santa Claus rally.

✔ Expect large ranges

ATR suggests strong movement—prime for trend trading.

✔ Be selective

On trend days, the second or third signal often provides the cleanest entry.

✔ Focus on price action

It will always lead indicators. Let the structure guide your decisions.

Learn Price Action the Right Way

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• Access to training materials
• And an introduction to our proprietary methods like the Sonic System

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Enjoy your weekend, and I’ll see you next week.
Good trading! 📈🔥