According to Fairlead Strategies founder Katie Stockton, the recent weakness in the stock market flashed a technical "sell" signal.

Every year, investors look forward to the “Santa Claus rally,” a period that encompasses the final five trading days of December and the first two trading days of the new year. Since 1950, the S&P 500 has gained, on average, 1.3% during this stretch, while finishing higher nearly 80% of the time, according to Dow Jones Market Data.

U.S. stock indexes are starting 2025 with gains, putting Wall Street on track to break a four-day losing streak that dimmed the end of its stellar 2024. The S&P 500 rose 0.6% at the open of trading Thursday following its longest losing streak since early September.

S&P 500 futures are up 0.6%. Dow Jones Industrial Average futures are gaining 0.4%. Nasdaq 100 futures are adding 0.8%. On Tuesday, the Dow Jones Industrial Average fell 30 points, or 0.07%, to 42,544,