In other words, the Dow has broken out of a long consolidation after a long time. Historically, this is somewhat bullish for the Dow, although the Dow might make a short term pullback.

This is what happens next to the Dow when it makes a new ATH (daily HIGH $) for the first time in at least 163 trading days.

Historically, this is more consistently bullish for the S&P 500’s medium term and long term.

Conclusion

All of the U.S. stock market’s major indices have broken out to new highs after a long consolidation. This is akin to a rocket that’s gathered fuel for a long time. The longer the fueling period, the higher the blastoff.

This is medium-long term bullish for the stock market.

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By Troy Bombardia

BullMarkets.co

I’m Troy Bombardia, the author behind BullMarkets.co. I used to run a hedge fund, but closed it due to a major health scare. I am now enjoying life and simply investing/trading my own account. I focus on long term performance and ignore short term performance.

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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