- BusinessBenzinga
History Suggests Record 50-Day Stock Market Rally May Be Just The Beginning
The S&P 500 has gained a record 39.6% since it hit its 2020 low back on March 23. Not only has that rally erased much of the year's COVID-19-related losses, it's also the best 50-day stretch in the history of the market.After such a strong rally, traders are understandably getting uneasy the market is overbought and due for a pullback. However, from a purely historical perspective, the strongest 50-day periods have generally led to even more gains over the year that follows, according to LPL Financial Senior Market Strategist Ryan Detrick.A Closer LookOn Thursday, Detrick looked at the seven other times since the S&P 500 was constructed in 1957 that the index has gained at least 20% over a 50-day period. In all seven instances, the index gained at least another 5.2% in the year that followed."Big 50-day rallies in the past have taken place near the start of new bull markets, and the returns going out a year were quite bullish," Detrick wrote.What's Next?LPL found that the S&P 500 averaged a 1.1% gain over the month following the best 50-day stretches. The S&P 500 has averaged a 6.2% gain over three months, a 9.1% gain over six months and a 19.4% gain over the year following these exceptional 50-day stretches.Detrick said traders are right to be concerned about the durability of the rally in the near-term given potential red flags in the put-to-call ratios among option traders. However, history suggests the next six months to a year could be very kind to investors overall.Benizinga's TakeIt's difficult to step in and chase the SPDR S&P 500 ETF Trust (NYSE: SPY) today after the market has had its best 50 days in history. However, LPL's research suggests long-term investors with dry powder should consider scooping up S&P 500 stocks on any near-term pullbacks.Do you agree with this take? Email feedback@benzinga.com with your thoughts.Related Links:5 Reasons The Value Stock Rally May Run Out Of Steam What The Yield Curve Is Saying About The Stock Market RallySee more from Benzinga * 5 Reasons The Value Stock Rally May Run Out Of Steam * Entering And Exiting Trades: 'What I Look For Are Those Broken Structures' * 'Price Is Truth': Analyzing Stock Chart Performance Using Technicals(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
197197 reactions - BusinessYahoo Finance
‘Astonishing’: Dumbfounded economists struggle to describe today’s jobs report surprise
May's jobs numbers left economists' jaws on the floor. Here's a roundup of what someone of them said about the unexpected gains.
- CelebrityTODAY
‘Glee’ producer calls out other ‘bad actors’ on show after Lea Michele allegations
"A lot of males get away with being the bullies-in-chief," Marti Noxon said. "How come we let them get away with it?"
- SportsNBC Sports
LeBron James on Laura Ingraham defending Drew Brees: ‘F-N tired of this treatment’
When LeBron James criticized president Donald Trump, Fox News host Laura Ingraham told LeBron: "Shut up and dribble."
- BusinessLA Times
Column: Mark Zuckerberg just made the case for breaking up Facebook
Mark Zuckerberg's cluelessness shows how socially dangerous Facebook has become.
- U.S.BBC
Buffalo police riot squad quit to back officers who shoved man
The police union says the two officers who pushed over an elderly man "were simply doing their job".
- U.S.NBC News
Police officer appears to make white power sign at protest, prompting probe
The New York Police Department said it is aware of the video and that the matter is under internal review.
