So heres our idea of what could happen to the S&P500 over the coming months.
Firstly we see a continued rally into next year.
This is because while CNBC/Bloomberg news will say people are closing positions, thats true but the market will rise creating a great trap.
Once the year begins we see a small and slow sell off which fills a lot of the Gaps (in the SPY not SPX )
Then once all the gaps are filled by February.
If has taught you anything you will see the mother of all double tops sitting waiting to be shorted (But wait for a breakout with the market technicals mean nothing).
Then we should see a sell off. This sell off could last a matter of months before the Fed stepping in a resuming the course that it has set for the market.
But Everyone Remember never predict the S&P500 it could kill you.
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Stay Safe and Have a Profitable New Year!