The S&P 500 has risen for eight consecutive days, approaching 7000 points, while the crypto market has surged and then retreated. How much longer can the "Santa Claus rally" continue until the end of the year?

Last Monday, the US stock market welcomed the traditional “Santa Claus rally,” with all three major indexes closing higher. The precious metals market also followed suit, with gold and silver both hitting historical highs, while platinum came very close to its record. In contrast, the Crypto Assets experienced a surge followed by a drop.

The S&P 500 index performed the best – not only did it successfully turn positive on Monday, but it also erased all the losses for the entire month of December, marking a continuous rise for eight months, a record not seen since 2018.

There are multiple factors driving this wave of rise. Last Friday's “Triple Witching Day” options expiration was a key point, where a large number of long positions were cleared out in the 6700-6800 Block range, which instead created upward space for stock prices. The VIX volatility index subsequently fell back below 15, hitting a new low since August, and short-term implied volatility continues to compress. The hedging logic of market makers has shifted - from resisting the market to following the trend, which has brought the entire market into a “gradual rise” rhythm.

Seasonal factors cannot be ignored either. Historical experience tells us that the stock market usually performs strongly at this time of year. In addition, investors have already begun to pave the way for 2026, filled with expectations for GDP growth and corporate profits, while the changes brought about by AI trading are also highly anticipated. There are also dovish voices within the Federal Reserve, with some board members stating that if interest rates are not cut further next year, the risk of recession will have to be faced, which further stimulates the market's risk appetite.

From a technical perspective, the next target for the S&P 500 is the round number of 7000 points, which is also a psychological price level that the market has been focusing on recently.