A rubber band can remain stretched for some time, but it takes some force to keep it stretched.
The consensus is anticipating a smooth sleigh ride for Santa's traditional stock market rally from November to year-end. But the rubber band of the current rally is looking quite stretched, and there's a distinct possibility the rubber band snaps and Santa's rally hits a rough patch and overturns, distributing lumps of coal rather than additional equity gains.
Mr. VIX keeps getting slammed at day's end, but he still managed to notch an uptrend:
A rubber band can remain stretched for some time, but it takes some force to keep it stretched. In this case, the force is the daily VIX body-slam and the resulting pop up in equities. This has worked to keep RUT and its cousins aloft for several weeks of going nowhere, but the chart suggests all the kiddies who are supremely confident that Santa will deliver more equity gains might find their complacency is not rewarded.