NEW YORK (Reuters) - Wall Street will see the year-end rally carry into the last week of 2010, but the question on everyone's mind is, "what's next?"
The Dow, the S&P and the Nasdaq on Thursday were up more than 5 percent on the month, and the level of optimism in the market was at a six-year high. The CBOE Volatility Index VIX, known as Wall Street's fear gauge, was down by two-thirds from this year's peak in May. "I would think that the Santa Claus rally will continue into next week as there are still lots of mutual funds trying to beat or at least meet the performance of the S&P 500 within the calendar year of 2010," said TD Ameritrade's chief derivatives strategist, Joe Kinahan, who is based in Chicago. "The VIX is also telling us that the market is expecting low volatility, which would also support upside movement." '+'
