The Stock Market Just Flashed an Ultra-Bullish Signal Seen Only 7 Times Before. History Says This Will Happen Next.
History says the S&P 500 could increase nearly 30% over the next year.
The Stock Market Just Flashed an Ultra-Bullish Signal Seen Only 7 Times Before. History Says This Will Happen Next.
Overview
The S&P 500 (SNPINDEX: ^GSPC) fell 9% from its high in March, after President Trump authorized military action in Iran. Investors sold stocks fearing that oil supply disruptions would make inflation worse, forcing the Federal Reserve to raise interest rates. And they were right to worry.
Brent Crude oil briefly topped $130 per barrel for the first time since March 2022 following the initial wave of attacks. Since then, inflation fueled by high energy prices has reached its highest level in three years. But the market quickly shrugged off geopolitical tensions and economic uncertainty amid a wave of strong earnings reports.
Details
Encouraging financial results supported a historic rally in the stock market. The S&P 500 advanced more than 19% during the two-month period that ended on May 29, something it has done only seven times before. And history says that rally is an ultra-bullish signal that portends more upside.
Source
Originally published at www.fool.com.
