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- There are three stock market indicators that are flashing a bullish signal, according to Fundstrat's Tom Lee.
- Lee pointed to the uptick in market breadth, a measure of winning stocks, in three separate gauges of the S&P 500.
- When those indicators flash simultaneously, it's a reliable sign of a future rally, and stocks could gain 20% this year, he said.
A bullish trifecta of stock market indicators are flashing, and it's a reliable signal that a 20% rally in stocks could be on the horizon, according to Fundstrat's head of research Tom Lee.
Lee pointed to the surge in market breadth in the S&P 500, a measure of how many stocks are gaining at once. In particular, there are three separate breadth gauges are showing an uptick in winning stocks: the Whaley Breadth Thrust, the Walter Deemer Breakaway Momentum, the Triple 70 Thrust.