This Signal Has Not Happened on the S&P 500 Since 2012

An interesting situation has developed on the stock markets.

You see, right now BOTH the weekly and monthly charts of the S&P 500 are showing the same powerful signal.

Take a look:

pulse signal monthly and weekly

These pulse signals have not appeared together on the weekly and monthly timeframes since September 2012. 

These signals indicate strong upward momentum.

Take a look at what happened back in 2012 after these signals occurred together:

pulse signals in 2012

As you can see, when both these signals happened together on the S&P, stock markets started a multi-year rally that ended in 2014.

The S&P 500 rose from 1300 to 2000 – a 54% move in less than 2 years.

Of course, there is no way of knowing whether this pattern will repeat again this time round.  If it does, we could be looking at 3,000 on the S&P by 2018.

If this sounds improbable to you, remember that back in 2012, it was also considered “improbable” for the S&P to reach 2,000.  But it did just that.

Personally, while I believe that the uptrend in the stock markets will continue this year, a correction is also highly likely.

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