The December rally has a reasonable chance of continuing, thanks to historical seasonality patterns often called the “Santa Claus Rally,” lighter trading volumes, and year-end optimism that can boost equities. Technical setups and investor sentiment could further support gains if macroeconomic conditions remain stable. However, the rally is far from guaranteed — unexpected inflation data, central bank decisions, or a slowdown in consumer spending could quickly reverse gains. While history and seasonal trends provide some tailwinds, it’s best to view any December rally with cautious optimism, seeing it as a potential opportunity rather than a certainty.
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