By: Michael Kramer
The S&P 500 may be ready for a big move higher if history repeats itself. The index has traded sideways for 22 months, while also seeing a drawdown of 20%. The last time that happened was in 2012 and 2013. Something similar happened in 2015 and 2016. Both times the S&P 500 went on to see massive gains for more than a year.
There are even more parallels, such as the index dividend yield inverting with the U.S. 10-year Treasury rate. The coincidences during these two previous periods and today are rather startling and could be a sign of good things to come.