The odds favor a continuation of the market's rally in December. The simple chart below was sent to clients by Chris Verrone, technical analyst at Strategas Research Partners:
Source: Strategas Research Partners
"With November drawing to a close this week, the market is entering the strongest stretch of the calendar. Historically, the S&P has printed a positive December about 75 percent of the time since 1950," Verrone wrote in the note. "Don't fight the calendar."
And the analyst points out that the odds get even better when the market is higher for the year going into the final month. The December average gain for the S&P 500 when it is positive through November is 2.2 percent, compared with an average advance of just 0.2 percent when it is in negative territory through the first 11 months, according to Strategas.