‘First 100’ Signal Triggered, Suggesting a New Bull Market Ahead

Skeptics think we’re in just another bear market rally. But pretty much every major bullish technical signal has been triggered over the past few months. And that strongly suggests this is not just another head-fake. Instead, a new bull market is likely right around the corner.
First, we got the so-called “Triple Barrel” buy signal in January – when three ultra-rare breadth thrusts were triggered on the same day. The historical precedents for that are 100% consistent with a new bull market breakout.

Then, we got the “Super Golden Cross” buy signal in February – a unique iteration of the popular Golden Cross signal that historically only gets triggered when bear markets turn into bull markets. That was triggered for just the ninth time in history this February.

This past month, we got bullish signals from the Coppock Curve, a popular momentum oscillator that also only tends to get triggered when new bull markets are starting. We also are seeing the market’s 200-day moving average meaningfully sloping higher after crashing over the past year. That action, too, is consistent with a new bull market breakout.

Most recently, stocks also passed the “First 100” test. That is, the S&P 500 rallied more than 8% through the first 100 trading days of the year. This has happened 22 times before over the past 75 years. In all but three instances, stocks rallied throughout the rest of the year, too, with average annual returns of about 25%.

If it looks like a duck, walks like a duck, and quacks like a duck, it is probably a duck.
The stock market rally we’ve seen since October 2022 looks, acts, and trades like a new bull market.

If so, that is exceptionally bullish because stocks tend to soar almost 50% in the first 12 months of a new bull market!