December was another excellent month for our LT wave.
Expected strength until the 9th allowed the index to climb back to 4700. The weaker period until the 20th was pretty mild and mostly sideways. That set up the market for a climb above 4800 in the final week.
How it is expected to continue is shown in the LT wave chart for January:
LT wave stays positive until around the 6th, so we could see new highs early in the year. Then a weaker period until the 15th or 16th. Slightly stronger until the 23rd, followed by a weaker final week. The patterns are not very outspoken, so we will see.
Normal caveats apply: don’t bet the farm on LT waves.