This Indicator Is the Last Hurdle for the Big Bull Market

The stock market is flashing all sorts of "bullish" signs these days... For example, in January, Chaikin Analytics founder Marc Chaikin noted that stocks had just triggered a "breadth thrust" signal. And it showed that a new bull phase could be starting. [Chaikin PowerFeed]( This Indicator Is the Last Hurdle for the Big Bull Market By Pete Carmasino, chief market strategist, Chaikin Analytics The stock market is flashing all sorts of "bullish" signs these days... For example, [in January]( Chaikin Analytics founder Marc Chaikin noted that stocks had just triggered a "breadth thrust" signal. And it showed that a new bull phase could be starting. The benchmark S&P 500 Index remains volatile today. But it's up around 3% since then. [And on Tuesday]( Marc explained how the S&P 500 just crossed a major milestone. This indicator has a 100% win rate since 1950. And it points to 19% upside over the next year. Put simply, there's a lot to like about stocks right now. But we're not getting the "off to the races" type of action we expect to see in a bull market – not yet anyway. As I'll show you today, one indicator is getting lost in all the "bullish" talk. It has a long history of success. And it's likely the last hurdle between us and the big bull market... Recommended Links: [The $10 Million Retirement Secret?]( There's a dead-simple and extremely lucrative way to make high inflation, high interest rates, and a choppy economy work to YOUR advantage. It may be the ONE strategy that could pay you 14% or more today with little risk... set you up for long-term income streams as high as 29% per year... plus HUGE capital gains. Backtesting even shows this could've added an extraordinary $10 MILLION to your bottom line with an initial $100,000 nest egg. [Click here for details](. [Gold Is SOARING... Here's No. 1 Move to Make]( As overall market volatility continues, the world's financial elite have started piling into the safety and security of gold. But if you're not taking advantage of a little-known way to invest for around $5 today, you're missing out. [Click here for full details](. We'll get to the specific indicator. But first, let's get up to speed with the "Dow Theory"... This financial theory goes all the way back to the Industrial Revolution era. Its namesake is Charles Dow, who developed the Dow Jones Industrial Average in the late 1890s. In short, the Dow Theory has two main parts... • Dow Jones Industrial Average • Dow Jones Transportation Average The Dow Jones Industrial Average tracks 30 large-cap companies in the market. Its constituents include UnitedHealth (UNH), Home Depot (HD), McDonald's (MCD), and more. It's a wide-ranging gauge of the economy (and the stock market) as a whole. On the other hand, the Dow Jones Transportation Average focuses specifically on how transportation businesses are doing. Think of railroads, airlines, and trucking companies. Here's where the Dow Theory comes into play... When both of these indexes are going up at the same time, it means the economy is strong. And if they're both going down at the same time, it means the economy is weak. Fortunately, as investors, we can see the Dow Theory in action using price charts. And as you can see below, the chart shows that this indicator hasn't triggered yet. Take a look... [Chaikin PowerFeed] This indicator triggers when both indexes pass their previous highs. That last happened in November 2020. Now, that might seem late to you. But with the charts, we can see that it isn't a "bottom" indicator – it's a "continuation of trend" indicator. The last time it triggered, both indexes went on big runs... The Dow Jones Industrial Average climbed another 25% after hitting a new high. And the Dow Jones Transportation Average surged roughly 33% in the ensuing months. This indicator doesn't come with a perfect set of rules. However, using objective data, we can easily see the pattern when it triggers. Remember, this indicator means the economy is healthy. And in turn, it's further proof that stocks are headed higher. In other words, it would be an "all clear" indicator for us. It might take time to play out. But it will boost our confidence in the bull market when it does. As you can see, we're not there yet. So for now, we'll keep watching this indicator. In the end, the Dow Theory is just another way to help investors like us understand the state of the economy (and in turn, the stock market). And today, its setup is still "neutral." But when this indicator triggers, we'll know that the bull is really getting let loose. Good investing, Pete Carmasino Market View Major Indexes and Notable Sectors # Hld: Bullish Neutral Bearish Dow 30 -0.31% 10 17 3 S&P 500 -0.56% 145 282 72 Nasdaq -0.76% 45 43 12 Small Caps -0.52% 408 981 496 Bonds +0.86% — According to the Chaikin Power Bar, Large Cap stocks are more Bullish than Small Cap stocks. Major indexes are mixed. * * * * Sector Tracker Sector movement over the last 5 days Financial +2.40% Industrials +0.89% Staples +0.48% Materials -0.12% Real Estate -0.27% Utilities -0.36% Discretionary -0.65% Information Technology -0.83% Health Care -1.67% Energy -1.83% Communication -2.87% * * * * Industry Focus Biotech Services 29 82 35 Over the past 6 months, the Biotech subsector (XBI) has underperformed the S&P 500 by -5.59%. Its Power Bar ratio, which measures future potential, is Weak, with more Bearish than Bullish stocks. It is currently ranked #13 of 21 subsectors. Indicative Stocks [rating] INBX Inhibrx, Inc. [rating] ANAB AnaptysBio, Inc. [rating] IONS Ionis Pharmaceutical * * * * Top Movers Gainers [rating] SNA +7.97% [rating] LRCX +7.23% [rating] DHI +5.64% [rating] NUE +5.50% [rating] STLD +4.93% Losers [rating] T -10.41% [rating] TSLA -9.75% [rating] STX -9.20% [rating] BIO -5.62% [rating] ALB -5.26% * * * * Earnings Report Reporting Today Rating Before Open After Close FCX, PG HCA, RF, SLB No earnings reporting today. Earnings Surprises [rating] DHI D.R. Horton, Inc. Q2 $2.73 Beat by $0.82 [rating] WRB W. R. Berkley Corporation Q1 $1.00 Missed by $-0.24 [rating] PPG PPG Industries, Inc. Q1 $1.82 Beat by $0.27 [rating] NUE Nucor Corporation Q1 $4.45 Beat by $0.56 [rating] BX Blackstone Inc. Q1 $1.07 Beat by $0.12 * * * * You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, [click here](. You’re receiving this e-mail at {EMAIL}. 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