Four 100% Accurate Bull Market Technical Indicators to Watch 

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

Stocks crashed in 2022 because of a confluence of adverse macroeconomic trends. Inflation soared. The Fed aggressively hiked interest rates. Fixed income yields soared. Corporate profit margins got squeezed.  

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

Why? 

For starters, we’re seeing unique “WARN” notices are rising in yet another sign that the labor market is cracking …  

Due to U.S. law, employers with over 100 full-time employees must provide written notice to the state and their workers at least 60 to 90 days ahead of a planned plant closing or a mass layoff event. These notices are called WARN notices, or Worker Adjustment and Retraining notices. WARN notices are spiking right now. Spikes in these notices tend to lead spikes in jobless claims. This is yet another sign that the U.S. labor market is materially weakening right now. 

What’s more, Treasury bill rates are way above bank deposit rates right now, and that means lower yields are on the horizon … 

Treasury bills are currently yielding 4.7%. Banks are giving customers a savings rate of 0.5%. That is a huge difference. We expect that because of the current banking crisis, a lot of money will migrate from those 0.5%-yielding bank savings accounts to those 4.7%-yielding Treasury bills. In other words, a lot of money should flow into Treasury bills over the coming months. That will push Treasury prices up and push Treasury yields lower. 

Forget the idea that today’s inflation is “sticky” … 

All signs point to the idea that inflation will collapse below 4% by May. If so, that means in this cycle, inflation will have been above 4% for only 25 months. That’s a very short stint for high inflation. During previous inflationary periods, inflation has often stayed north of 4% for 40 to 50 months. During the 1970s, inflation stayed above 4% for about 120 months. Therefore, while we understand that everyone is calling this bout of inflation “sticky,” we don’t think the data supports that label. Given that this current period of inflation is tracking toward only 25 months of 4%-plus inflation readings, the inflation we’re seeing today is actually not sticky at all. It’s transitory. 

As all this is happening, stocks are getting primed to soar. 

The reason we believe this is because dozens of the fundamental, technical, and sentimental indicators that we closely track have hit extremes recently. And they’re extremes that they only tend to hit when bear markets die. 

And we discovered several compelling indicators. 

One of these is a technical indicator that flashed an “extreme fear” signal back in October. This indicator has flashed this exact same signal more than 100 times over the past 32 years. Every single time, the market was higher a year later, with an average return of nearly 30%. 

Then there are three major, ultra-rare, ultra-predictive stock market breadth thrust signals that were recently all triggered … 

Of course, after we discovered these technical indicators, we became more bullish than ever. 

The bear market is almost certainly ending, and a new bear market is starting to emerge. And the weight of evidence today strongly suggests that  investors who invest now will make a lot of money over the next 12 months. 

Here’s a deeper look. 

The “Bear Market Enders” 

First, let’s talk about the three indicators that all flashed simultaneously. 

The Breakaway Momentum indicator compares the number of advancing stocks to the number of declining stocks in the market over a 10-day period. And it’s triggered when the amount of advancing stocks outnumbers declining stocks by about 2-to-1. This is very rare and usually only happens when bear markets end and bull markets begin.   

The Whaley Breadth Thrust indicator is similar. It compares the number of advancing stocks to the number of declining stocks in the market over a five-day period. And it’s triggered when the amount of advancing stocks outnumbers declining stocks by about 3-to-1. This, too, is very rare and usually only happens when bear markets end and bull markets begin.  

The Triple 70 Thrust indicator was also triggered. This happens when the percentage of rising stocks in the market exceeds 70% for three consecutive days. This is also a rare indicator, and it also tends to mark the start of a new bull market.  

All three ultra-rare, ultra-predictive “bear market ending” technical indicators flashed just recently, marking the first time ever that all three have flashed on the same day.  

In the past, we’ve only had instances where two of the three were triggered at the same time. And that has happened just seven times since World War II.  

In all seven instances, the stock market was higher three, six, nine, and 12 months later.  

The average return 12 months later? 26%. The smallest return 12 months later? 13%.  

History is pretty clear here. We have a 100% accurate precedent for what just happened, and it signals a massive stock market surge over the next year. 

The Perfect Opportunity to Buy Stocks 

To be sure, it’s not up, up, and away for stocks immediately after these technical indicators get triggered.  

In fact, stocks always pull back first before the real rally gets started. For example, every time the Breakaway Momentum indicator has been triggered since World War II, stocks suffered a short-term pullback of at least 2% – and, on average, 4% – over the following few weeks.  

Then, they soared.  

So, if you’re looking for the ultimate buying opportunity…  

You don’t want to buy stocks right after the Breakaway Momentum indicator flashes … 

You want to buy stocks after they drop 2%-plus following a Breakaway Momentum trigger – before they turn around and fly higher.  

That’s happening right now. 

The Weakest Market Ever? 

The fourth technical indicator we are watching is the McClellan Oscillator. 

In short, it is a unique statistical measurement of the number of advancers in the market relative to the number of decliners. It’s a market breadth indicator, which can be applied to both stocks and cryptos. 

Specifically, the indicator measures the difference between the 19- and 39-day exponential moving averages of net advancing stocks. The higher the difference, the wider the market breadth. The lower the difference, the narrower the market breadth. 

The McClellan Oscillator is broadly considered the best way to measure market breadth.  

In any event, the 50-day moving average of the McClellan Oscillator dropped below -15 last year. That’s an unusually weak McClellan Oscillator reading. It’s about as weak as the reading has ever been. It speaks to “peak fear” and “peak weakness” in the market. 

For context, this oscillator has dropped below -15 only 109 times before on record (going back to 1990), meaning the oscillator has spent just 1.4% of trading days at that low level. 

Now, here’s the bullish part: The markets tend to rally big after the McClellan Oscillator gets this negative. 

And not just sometimes – but ALWAYS.  

A Perfect Track Record 

Guess when the last time was that the McClellan Oscillator was this negative? Yep – March 2020, at the depths of the COVID-19 pandemic. 

How about before that? June 2016 – right after the Brexit vote. 

And before that? June 2012, when everyone was worried that the economy would slip back into a deep recession. 

The McClellan Oscillator was also this negative in June 2010 (amid a foreign debt crisis), November 2008 (at the depths of the great financial crisis), August 2002 (the bottom of the dot-com crash), June 1999, and August 1990. 

What do all these months have in common? They were all very, very close to an absolute bottom after a stock market rout. 

The other thing they have in common is that markets soared in the months that followed. 

Here’s the exact data. Since 1990, on the 109 occurrences when the McClellan Oscillator dropped below -15: 

• 74% of the time, markets were higher a month later, with an average return of 4%. 
• 82% of the time, markets were higher three months later, with an average return of 8%. 
• 94% of the time, markets were higher six months later, with an average return of 16%. 
• 100% of the time, markets were higher 12 months later, with an average return of 29%! 

In other words, we discovered a technical indicator with a 100% track record (on over 100 data points) of calling a market bottom and new bull market – and predicting massive returns over the next 12 months. 

That’s a big deal. 

The Final Word 

Folks, these are the ultimate buy signals that we’ve been waiting for.  

History says now is the perfect time to buy before a massive stock market surge over the next 12 months.   

And we have the perfect tool to help you buy the best stocks for this market melt-up.  

Over the past year, my team and I have developed a proprietary quantitative stock-picking tool designed specifically to identify breakout stocks – before they break out.  

It has already spotted dozens of stocks that have soared more than 100% over the past few months alone.  

And we’ve discovered a little-known “breakout trigger” that could help you collect winner after winner in any market 

So, on Wednesday, April 5 at 4 p.m. ET, I’ll spill the beans on this powerful research project we’ve been working on for the past year. 

You’re already signed up, so there’s nothing more for you to do but to sign up for our VIP reminder service to gain exclusive access to a watchlist of stocks that are currently flashing breakout signs. 

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