Over the last month, we have discussed why we were positioning portfolios to participate in the traditional year-end "window dressing" rally. Such is also known as the "Santa Claus" rally.

As discussed last week in "All I Want For Christmas Is A Bull Market."

"Whether optimism over a coming new year, holiday spending, traders on vacation, institutions squaring up their books before the holidays—or the holiday spirit—the bottom line is that bulls tend to believe in Santa Claus." – Ryan Detrick

While the statistics suggested that the last week of December should have been a bullish one, it didn't entirely turn out that way. Okay, let's be honest, it was just a bit disappointing. Lot's of chopping around all week and a final spurt at the close yesterday. Not exactly confidence-inspiring.

As shown in the chart below, the market closed just 0.87% higher than the previous all-time high set mid-month. However, the good news is the last high did hold as support. Such sets up the possibility for "Santa" to "deliver" on the New Year's first two days.