Market Consolidation Update

Both QQQ and SPY traded in tight ranges this week as the Santa Claus rally stalled. QQQ settled near 623.93, just above its clustered EMAs (5: 619.64, 9: 619.16, 20: 618.03), indicating sideways consolidation. SPY closed at 686.95, also above its EMAs (5: 686.95, 9: 686.33, 20: 684.32), suggesting steady momentum. The VIX at 14.20 reflects low volatility despite mixed economic data - strong GDP growth (4.3%) offset by softer consumer confidence and durable goods orders. Technicals show both major indices in healthy consolidation patterns above key moving averages, with energy leading sector performance while broader markets digest Fed signals of potential 2026 rate cuts.