Stocks: More Cheer in the New Year

S&P's chief technical strategist sees the major indexes heading higher in 2007

We believe the stock market is in good condition to carry its recent gains into next year. While we think that stocks will peak sometime in December or early January from an intermediate-term perspective, we believe the market will correct by moving sideways rather than substantially lower. Once this sideways action is complete, we then see the major indexes heading higher, leading to potential gains of 15% to 25% in 2007.

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