The rare technical indicator has just shown the end of the bear market

All bear markets eventually turn into new bull markets. And an overwhelming amount of evidence today suggests that the 2022 bear market is about to turn into a 2023 bull market..

Stocks plummeted in 2022 due to a confluence of adverse macroeconomic trends. Inflation has soared. The Fed has been aggressively raising interest rates. Fixed income yields have soared. The profit margins of the companies have been reduced.

These are the kinds of trends that tend to hurt stocks, and in 2022, they all came together at once. No wonder the stock got crushed!

But in 2023, the stage is set for all these trends to reverse course.

Inflation will collapse. The Fed will respond by halting its rate hike campaign. As a result, bond yields will decrease. And as companies look to aggressively cut costs, corporate profit margins will expand. (Have you noticed any layoff announcements lately?)

Like everything that happens, shares will rise in 2023 – and I’m not the only one who sees things this way.

Why else do you think the S&P 500 Did he have one of his best days ever last week? Why did tech stocks put together one of their best short-term rallies ever last Thursday and Friday? Or why do you think hypergrowth stocks actually put together their best short-term rally to end last week?

Smart money see writing on the wall. Indeed, the pain of 2022 is about to turn into the gain of 2023. So, smart money is getting into position today. They are buying big.

In fact, they’re buying so much that last week, a super rare technical indicator flashed. It’s one that only emerges when lots of investors rush to buy the stock’s decline. And every time it has flashed in the past, it has marked the end of a bear market and the start of a new bull market.

This time will be no exception. The end of the 2022 bear market has probably arrived. A new bull market could form. Investors who take advantage of it today could make a fortune next year, and we did the best way to take advantage of it immediately.

Here’s a deeper look.

The “Ender Bear Market”

Last week, the stock market soared after October inflation numbers were much lighter than expected and sparked hopes that inflation is finally dying down.

The buying pressure was immense. For example, the S&P 500 rose more than 5.5% on Thursday to mark one of its best days ever. The Nasdaq soared even more, climbing more than 7%.

In fact, last week’s buying pressure was so immense that the stock market flashed an ultra-rare technical indicator that I call “Bear market ender.” This indicator only appears when investors buy the dip so steep that it effectively signals the end of the bear market.

I’m talking about a bullish breadth push indicator. Specifically, it flashes when the percentage of stocks trading on the New York Stock Exchange above their 200-day moving average swings violently from very low to more normal levels. Quantitatively, that’s when the percentage fluctuates from under 15% to over 40% in a matter of weeks or less.

Such violent swings higher up are very rare. They’ve only happened six times in the last 30 years.

But I am too incredibly bullish. In each of these six cases, the stock was going from a bear market to a bull market. They always skyrocketed over the next year. Average yield? Over 20%.

Good… this indicator just flashed for the first time since the market was recovering from the scare of the COVID-19 pandemic.

In recent weeks, the percentage of shares in the market that have traded above the 200-day moving average has risen from under 15% to over 40%.

The story says that what comes next is the end of the bear market, the start of a new bull market, and a stock rally of more than 20% over the next 12 months.

We will not argue with history on this. It aligns with fundamentals, trading action, technicals – everything.

The shares are positioned to go higher over the next year. But are you able to take advantage of this record rally?

The last word

I can’t stress enough: Everything we are looking at today tells us that now is the time to buy the dip.

Every day we review dozens of fundamental and technical market indicators. We have found more than a handful with perfect track records of calling bear market lows. And pretty much everyone is flashing right now.

The implication is that the bear market is pretty much over. Next? A multi-year bull market that restarts in 2023.

The time to buy is now.

And if you’re looking to buy, we’ve got the perfect stock for you. It’s a small $5 next-generation transportation technology stock that has developed industry-breaking technology and is potentially working with one of the largest technology companies in the world!

At $5, this stock is very undervalued. But it won’t stay that way for long. If a new bull market roars into 2023, this $5 stock could easily turn into a $50 stock. It could be one of the market’s biggest winners next year.

Take the leap and learn its name, ticker symbol and key company details.

As of the date of publication, Luke Lango did not hold (directly or indirectly) any positions in the securities referenced in this article.

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