Despite some volatility, the Santa Claus Rally appears to be on track to lift the market into year-end. The S&P 500 extended its holiday-week rebound on Wednesday putting the index within an arm?s reach of the current all-time high. The question that needs to be asked, though, is what will the New Year bring?

The only certainty for the New Year is inflation. Inflation is running rampant through the economy and threatens to dampen consumption on many levels. The caveat for investors is that, until the market gives the signal for reversal, the trend in the market is up. If the S&P 500 can break out to a new high, we see it continuing upward at least until the Q4 earnings cycle gets underway.