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- Stocks could rally 21%, as there are indicators flashing their strongest signal since 2020, according to Ned Davis Research.
- The firm pointed to the S&P 500, which recently formed a so-called golden cross.
- Such signals have been confirmed by other longer-term indicators of stock market breadth, the firm said.
Stocks could climb 21% higher this year, as there are bullish indicators in the market flashing their strongest signal since 2020, according to Ned Davis Research.
In a note on Monday, the research firm pointed to several indicators, including the firm's Fab Five Tape Component, a multi-indicator gauge of winning stocks in the S&P 500.
That model recently hit its highest level since December 2020, when the S&P 500 was on track to record its all-time-high in 2021.
In particular, the bullish signal has resulted from three indicators in the Fab Five model: