An interesting situation has developed on the stock markets.
You see, right now BOTH the weekly and monthly charts of the S&P 500 are showing the same powerful signal.
Take a look:
These pulse signals have not appeared together on the weekly and monthly timeframes since September 2012.
These signals indicate strong upward momentum.
Take a look at what happened back in 2012 after these signals occurred together:
As you can see, when both these signals happened together on the S&P, stock markets started a multi-year rally that ended in 2014.
The S&P 500 rose from 1300 to 2000 – a 54% move in less than 2 years.
Of course, there is no way of knowing whether this pattern will repeat again this time round. If it does, we could be looking at 3,000 on the S&P by 2018.
If this sounds improbable to you, remember that back in 2012, it was also considered “improbable” for the S&P to reach 2,000. But it did just that.
Personally, while I believe that the uptrend in the stock markets will continue this year, a correction is also highly likely.