Good Monday morning. How sensational was the month of May? The S&P 500 jumped 6% in May with Nasdaq up a hard to believe 9%.  Returns like these don’t take place in a vacuum. The data tells us there are additional (sharp) gains coming.

Overwhelmingly Bullish Data

Going back to 1957 (birth of S&P 500), there have been just 6 times when the S&P 500 has gained at least 5% in May. Over the next 12 months the S&P 500 was upon average of 20% (with the markets higher 100% of the time). 

These historical returns match what we’ve seen following two breadth thrusts that also occurred over the last month; the Whaley and DeGraaf Breadth Thrusts

DeGraaf Breadth Thrust and a Zweig Breadth Thrust occurring within the same timeframe is very rare. The DeGraaf Breadth Thrust happens when over 55% of S&P 500 stocks hit a 20-day high, signaling strong market momentum. The Zweig Breadth Thrust, on the other hand, is a sharp shift in market breadth, typically when the percent...