- The **cyclical analysis model** suggests that despite previous market adjustments and a short-term upward channel breakdown, the monthly upward trend since early 2024 may still persist. This conclusion is supported by comparing the current market structure with the 2017 December trend using **Chan theory** and the **thermometer indicator** for similarity analysis[6] - The **trend strength factor** indicates that since the end of November, the oversold rebound has significantly improved the multi-moving average alignment, leading to a notable recovery in upward trend strength. This supports the view of a moderately positive market outlook[6] - The **industry divergence indicator** has dropped to historically low levels in recent years. Historical data shows that during bull markets or upward trends, low levels of industry divergence often correspond to local lows or even significant bottoms, which is a key basis for maintaining a positive outlook for December[6] - The **four-wheel drive model** signals are relatively dispersed, with notable performances in large-cap value, small-cap growth, technology, and high-dividend sectors. Specific signals on Thursday and Friday highlighted opportunities in non-bank financials, China New Materials, and defense sectors[6][15]

- The report discusses the market's high volatility phase, likened to the "tail" of a fish, indicating a potential peak in the TMT sector's performance due to high trading concentration and lack of clear drivers for other sectors [1][7] - Industry divergence, measured by rolling quarterly return standard deviation, has been expanding and is expected to reach its peak since September 2024 if the current "strong-get-stronger" trend persists [1][7] - The TMT sector's trading volume share is at its third-highest level historically, and when combined with the advanced manufacturing sector, it approaches the historical peak, suggesting a crowded trade scenario [1][7] - The stock-bond yield gap has been running below the -2 standard deviation of the Bollinger Band for nearly three years, implying limited upside potential for the market without new upward drivers [2][8]