A Santa Claus rally could come just in time next week to help stocks end the year on a high note

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Investors will measure the response to this week's selloff, which came at a time when markets are entering a strong seasonal period.

Santa Claus could arrive next week just in time to help stocks end the year on a high note following this week's selloff. But whether St. Nick brings presents or coal, investors will scrutinize the health of the bull market heading into 2025. December is historically the second-best month in a U.S. presidential election year for the Dow Jones Industrial Average and S & P 500, according to the Stock Trader's Almanac . On average, the two indexes gain 1.3% and 0.

27, and was last floating around 5,880, or more than 3% off that level. "I think it'll be close whether or not we kind of close at a new high," said Mike Dickson, head of research and quantitative strategies at Horizon Investments. "It will be a coin flip on whether or not we actually cross that." .

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