NASDAQ Leading the S&P is a Bullish Sign
Stock-Markets / Stocks Bull Market Jun 04, 2018 - 02:22 PM GMTBy: Troy_Bombardia
The NASDAQ and S&P are both up this year from January – May. However, the NASDAQ has massively outperformed the S&P by more than 6%.
Here are all the historical cases in which the NASDAQ outperformed the S&P by more than 6% from January-May (while both indexes are positive), and what happens next to the S&P for the rest of the year.
Click here to download the data in Excel.
Here are the historical cases in detail.
2017
The S&P trended higher throughout the rest of the year.
2009
The S&P trended higher throughout the rest of the year.
2003
1999
The S&P trended higher throughout the rest of the year, although it did so in a choppy manner.
1996
The S&P trended higher throughout the rest of the year, although it did so in a choppy manner.
1991
The S&P trended higher throughout the rest of the year, although it did so in a choppy manner.
1983
The S&P trended sideways throughout the rest of the year.
1979
The S&P trended higher throughout the rest of the year, although it did so in a choppy manner.
1978
The S&P trended sideways throughout the rest of the year.
1972
The S&P trended higher throughout the rest of the year, although it did so in a choppy manner.
Conclusion
This is a medium term bullish sign for the stock market. It suggests that the stock market will trend higher throughout the rest of the year, even though it may do so in a choppy manner.
There was only 1 loss at year end out of the 10 historical cases. This was a tiny loss: -1.16%
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By Troy Bombardia
I’m Troy Bombardia, the author behind BullMarkets.co. I used to run a hedge fund, but closed it due to a major health scare. I am now enjoying life and simply investing/trading my own account. I focus on long term performance and ignore short term performance.
Copyright 2018 © Troy Bombardia - All Rights Reserved
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