Bullish Signals for Stocks Emerge Under Market’s Gloomy Surface
- S&P’s four straight gains of at least 1% is an optimistic sign
- Breadth-thrust clusters typically happen before new uptrends
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While U.S. stocks were flip-flopping in morning trading Monday, there are signs that investors are getting more bullish and snapping up beaten-down stocks.
The S&P 500 Index is coming off its best week since November 2020, having posted four consecutive days of more than 1% gains for just the fifth time in history, according to LPL Financial. Historically, that has been encouraging for the stock market, as each time it’s happened the S&P has climbed more than 20% over the ensuing year, with an average return of 28%.