A contrary indicator suggests that the market's winning streak is just beginning

The series of market victories may only have begun.

Yardeni found that the S & P 500 index had entered corrective territory every time the year 's index had hit record highs or so. It seems like an opposite trend is taking place right now.

"The downtrend was so widespread that the market had a technical rebound, and the fundamentals are now moving in the right direction," added Yardeni.

It's a scenario that he predicted on "Trading Nation" on Dec. 26, as stocks staged a historic rebound after the collapse of Christmas Eve. According to Yardeni, investors were too pessimistic about a recession, the Fed's interest rate policy and the US-China trade war.

"Many of these things seem to be going in the right direction here, so the markets have performed extremely well," he said.

The S & P 500 closed the third week of January without correction. The index is currently recording its longest run of victories since August – a four-week rise in signs of trade tensions between the US and China may ease and encourage fourth-quarter results.

Yardeni said that these factors ultimately lead to a strong rebound in the market for a year. He predicted that the S & P 500 will be 15% higher than current levels by the end of the year.

"I'm still holding at 3100 and I feel better about it," said Yardeni, who pointed to valuation multiples, low interest rates and inflation that is preparing Wall Street to a very good year.