One picture to understand | Bull market in US stocks, key technical signals appear!
In the S&P 500 constituent stocks, 40% of companies have seen their 200-day moving average rise! Since 1991, this signal has appeared before the S&P 500 index rose, with an average increase of 6.4%!
As a tool for judging the long-term trend of the market, the 200-day moving average is bringing good news to US stock investors!
According to Sentimen Trader data, in the past month and a half, 40% of the companies in the 11 industries of the S&P 500 index have seen an upward trend in the 200-day moving average, the first time since the summer of 2020.
It is worth noting that since 1991, the above signal has appeared before the rise of the S&P 500 index, with an average increase of 6.4%; one year after the signal appears, the S&P 500 index has increased by an average of 15%.
As for the S&P 500 index itself, its 200-day moving average has also been rising for 12 consecutive days, the first time in a year.
Sentimen Trader analysts believe that history may be repeating itself, and a favorable trend in the US stock market may be forming right in front of investors' eyes. However, we need to wait until the proportion of component stocks with rising 200-day moving averages increases from 40% to over 70% to confirm the arrival of a bull market in the US stock market.
