Equity markets began the week on uncertain footing as investors look ahead to what December will bring. The S&P 500 hugged the flat line throughout the day, leaving the markets slightly lower at the session's end. The cause for concern includes the OPEC+ decision on production targets, which was delayed from last week, and the October reading of the PCE price index. OPEC+ is expected to reduce production to support oil prices, and the PCE index is expected to cool. While one new byte is expected to cap gains in equity markets, the other could spur the market to new heights. In either case, investors should not chase prices and be prepared for volatility.

The question on everyone's mind is if Santa Claus will bring a rally to town this year. The Santa Claus Rally traditionally starts a week or two before the Christmas Holiday and tends to leave equity markets higher at the end of December. This is more true in election years when pre-election positioning helps to lift equities. If Santa Claus does bring a rally to town, the S&P 500 could end the year at a record high.