This Indicator with a Perfect Track Record Just Signaled a HUGE Rally Ahead per Analysts...

Well friends, it appears that a super-rare bullish signal with a “perfect” track record just flashed green, and if you’re not paying attention, you might want to start. Why? Well because this definitely isn’t your run-of-the-mill “analyst says” nonsense—in fact, this signal has only shown up 29 times since 1962, and when it does, it means one thing: money.

(Source: Giphy) 

In short, the NYSE McClellan Summation Index—which sounds fancy but basically measures how many stocks are moving up versus down—just completed a cycle from below 100 to over 1,000, according to our friends over at SentimenTrader. Translation? Stocks aren’t just limping along; they’re sprinting, but it's not just the Nvidias, Apples and Meta’s of the world that are in on in, it's the entire market. 

(Source: Business Insider) 

What’s more is that this signal doesn’t just have a good track record—it has an insane track record. According to Dean Christians, the senior research analyst at SentimenTrader (aka the guy who knows way more than we do), when this signal flashes while major indexes are near record highs—which they are right now—the signal has a 100% win rate. Yes, you read that right. One. Hundred. Percent.

(Source: Giphy) 

For instance, here are some of the numbers that Dean threw around that’ll make your head spin: historically, when this signal flashed, the market saw gains over the next year 96% of the time. But when it happens near the top, like it is now, it’s batting a thousand. “Signals within 2% of a high have never experienced a loss over the next two, six, and twelve months,” Dean wrote in a note to clients.

Now take a second to let that sink in. The last time this thing popped up was December 2023—and since then, the S&P 500 has rallied 20%. If history repeats itself—and with this kind of track record—we could be looking at another year of record highs.

(Source: The Guardian Circa December 2023) 

How much of a record year you ask? Well, on average, this signal has led to gains of 5%, 9%, and 15% over the next three, six, and twelve months, respectively. A 15% rise from current levels would take the S&P 500 to a mind-blowing 6,600 by September 2025. Again, not my numbers… Deans numbers.

But the really interesting thing here is that it’s not just the big tech names that are driving this. The equal-weight S&P 500 (which gives every stock an equal shot at glory) is up nearly 10% since July, compared to the cap-weighted version's measly 1%. That means the little guys are pulling their weight, and the market’s strength isn’t just an AI fueled tech mania story. 

(Source: Giphy) 

Dean Christians points out that this widespread participation is critical. "Typically, when stock indexes consolidate, as most have since July, market breadth weakens as lagging averages or pivot points catch up to price," he said. "But that’s not happening here. Breadth has stayed strong and even improved." In other words, the market isn’t just treading water—it’s gaining steam. 

(Source: Giphy) 

Now with that said, sure, some analysts will tell you not to get too hyped over any one indicator, and most of the time, that’s usually good advice. But again, the data doesn’t lie. And while nobody’s saying the market is going to go up in a straight line forever - with inflation worries easing and this super-rare signal flashing bright green—alongside last week’s stellar market performance—the path seems (hopefully) clear for a roaring market ahead. 

In the end though, there are absolutely no guarantees in the market. Even with a signal that has an apparent “perfect” track record like this one. But again, the historical numbers and the historical track record definitely has some weight to it…

(Source: Giphy) 

And if you’re sitting around waiting for more proof, well then you may just risk watching the market leave you behind. But hey, no pressure here. Just know that when this signal flashes, it doesn’t mess around. 

In the meantime though, do what you will with this information and as always stay safe and stay frosty, friends! Until next time… 

PS: We failed. Yep, you read that right. We didn’t hit our usual triple-digit target. Instead, our Wednesday pick only shot up 60%. Is that a letdown? Maybe for perfectionists, but to be honest, we’ll still take it. Want in on our next potential 100%+ winning trade alert? Click here to become a premium member.

Stocks.News holds positions in Apple and Meta Platforms as mentioned in the article.