5 Signs The Stock Market Has Flipped From Bearish To Bullish

Five major indicators suggest that the market rally of 2019 – viewed with skepticism by many investors thus far – has switched from from bearish to bullish. Among the signs: the vast majority of stocks are trading above their 50-day moving averages, a rising number are hitting 52-week highs, several major market indexes are above their 200-day moving averages, and momentum has returned in force (see table below). “Momentum is a key component right now,” as Paul Brigandi, managing director and head of trading at ETF provider Direxion Investments told The Wall Street Journal. “A lot of people are jumping in to get on board,” he added.

5 Indicators This Bull Run Has Legs

  • Over 80% of S&P 500 stocks above 50-day moving averages
  • Rising number of S&P 500 equities hitting 52-week highs
  • Many major U.S. market indexes above 200-day moving averages
  • The most-watched index, the S&P 500, nears 200-day moving average
  • Momentum investors are “jumping in,” propelling further gains

Source: The Wall Street Journal

Significance For Investors

Looking Ahead

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