S&P 500: 60% of Stocks Above 20-Day Highs Could Hint at Double-Digit Returns Ahead
On December 13, the Dow Jones Industrial Average accomplished a remarkable feat by reaching a new all-time high, marking the first time since early January 2022.
This achievement signifies the extension of the Dow Jones' streak of consecutive years with at least one all-time high to 11.
The previous record streak spanned from 1989 to 2000, during which it recorded 12 consecutive years with at least one all-time high.
The years with the most all-time highs were:
In the last 129 years, in total, there were 55 years in which it achieved at least 1 all-time high and the other 74 occasions it did not.
The S&P Composite 1500 is a U.S. index that includes all the stocks in the S&P 500, S&P 400 and S&P 600 and covers 90% of the market capitalization of the country's stocks.
Well, it is up more than +62% for the year, which means it is its best year in the last 28 years.
The 3 years better than the current one are:
The significance of the current situation lies in the fact that over 60% of all S&P 500 stocks have reached new 20-day highs. Such occurrences are rare, having only happened 15 times in the last 51 years.
Historically, the S&P 500 has consistently responded positively to this pattern, recording an upward movement one year later on all 15 occasions, with an average return of approximately +18%.
But that's not all. As it turns out, the S&P 500 blew out last November by +8.9%, its 18th best month ever. Well, history shows us that if we take every month in which the S&P 500 has risen more than +8%, the index a year later had risen virtually every time.
This is the ranking of the world's major stock exchanges so far in 2023:
Bullish sentiment, i.e. expectations that stock prices will rise over the next six months,
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