It looks like things are going to be very interesting in the new year. The market is strong, as evidenced by new all-time highs in all of the major indices this past week $SPX, $NDX, $DJX, and $RUT (although $RUT has faltered a bit in the last couple of days). Since price action is the most important indicator, the overall trend remains bullish as long as $SPX holds above support.
The bears took advantage of a small window before the "Santa Claus rally" begins to drive $SPX down a bit. Once again, support in the 3630 3650 area has held. We are still viewing 3550 as the more important support area, for if that were broken, then the $SPX chart would take on a bearish aura.
Equity-only put-call ratios continue to decline, and thus they remain on buy signals. They are extremely overbought, but that is not a sell signal.
Over the past three days, $SPX finally managed to break out to new all-time closing and intraday highs. Thus, the $SPX chart is bullish, as there is no classical resistance -- by definition -- when it is at all-time highs.
$SPX has advanced an astonishing 1,500 points, or 68%, from the March lows. No matter how you interpret that, it does not jibe with the economics caused by COVID-19. But TINA and FOMO are formidable proponents of buying stocks, and they have certainly won the day.