A historical signal in the S&P 500?
Our team member yesterday came across amazing data on a rare market pattern that historically signaled exceptionally large returns in the S&P 500!
The signal is triggered when the S&P 500 reaches a 50-day low, followed by 70% of NYSE stocks rising on 3 out of the next 4 trading days.
The numbers speak for themselves (the historical average).
Average return for 1 month: 2.7% (positive in 9 out of 12 cases).
Average return for 3 months: 6.8% (positive in 11 out of 12 cases).
Average return for 12 months: 23.2% (positive in 10 out of 10 cases!).
Note: Every time the signal appeared, the 12-month return was positive!
This is a particularly interesting historical sign.
This signal was triggered twice more in the last year, with the last signal (April 2025) showing much stronger performance than the average: - The April 2025 signal yielded a 9.0% return in the first month. - This return is 3.3 times higher than the historical average for one month (2.7%).
According to historical data, does this pattern indicate that the market is likely at a turning point?
Will this signal prove itself - again?