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LivestreamMenuTuesday’s rally was historic for several reasons. The Dow Jones Industrial Average and S & P 500 scaled to all-time highs, thanks to a decline in oil prices and strong earnings reports from companies such as Caterpillar and Palantir Technologies. While the Nasdaq Composite did not reach a record, it did log its fourth straight daily gain of 1% or more. That marked the 18th time the Nasdaq rose by that magnitude for four sessions in a row, according to data compiled by Bespoke Investment Group. Historically, this bodes well for the benchmark, which is sitting just 2% below its all-time high. “A move like this would normally have you expecting a pullback. History suggests otherwise,” Bespoke wrote. The Nasdaq has averaged a 1.6% gain one week after these instances and a 4.1% advance one month out. The gains get even stronger in the following three, six and 12 months: 9.6%, 21% and 29%, Bespoke said. One thing that stands out about this four-peat of 1%-plus moves is how close the Nasdaq is to its 52-week high. “Unlike most prior occurrences, which came off depressed levels, this streak is happening with the index already near its highs,” Bespoke said. To be sure, the firm noted the Nasdaq “won’t keep going up forever, so we would watch the 26,000 level for support going forward.” The Nasdaq closed at 26,584.99 on Tuesday. Its all-time closing high of 27,093.90 was set on June 2.Read More
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