This indicator has had a 100% track record of predicting positive forward returns for 35 years
The stock market may be in freefall these days, but we are sensing a great buying opportunity in this chaos.
In fact, we just told our premium subscribers that this might be the best time to buy stocks all year… because per our analysis, the market is showing strong reason to be bullish right now.
That might sound a little crazy. After all, most current media headlines are negative. There’s a lot of fear about how tariffs could plunge the global economy into a recession. And they very well could…
But the market is starting to imply otherwise.
Just yesterday, for example, the S&P 500 flashed a very strong buy signal that, going back to 1990, has a 100% track record of predicting positive forward returns.
The Bullish Indicator Suggesting a Rally Ahead
On Monday, March 10, the S&P 500 dipped into oversold territory – with a relative strength index (RSI) below 30 – for the first time in over a year. Then, yesterday, March 12, its RSI rose back above 30 as the index popped back out of oversold territory.
In other words, the market was only oversold for two days. That’s technically significant.
Every time the market has fallen into oversold territory for the first time in over a year, then immediately rebounded (only spending one or two days oversold), stocks went on to rally over the next six and 12 months…
Every time.
This happened in July 1996, August 2004, October 2005, May 2010, October 2014, February 2018, and October 2023.
And each time, the bounce lasted.
Stocks were higher both six and 12 months later – every time. Average 12-month forward returns were over 20%.
In other words…
While the headlines surrounding the stock market may be negative right now, the technical evidence is decidedly bullish.
The stock market itself isn’t implying that it will crash into a bear market. Rather, it seems likely to rebound with vigor over the next 12 months.
The Final Word
We think it is time to ignore the headlines and listen to the market.
History tells us that moments like this – of heightened volatility and widespread fear – are either fantastic buying opportunities or the start of massive crashes.
The technical data can tell us which outcome is more likely. And right now, the data is pointing toward a fantastic buying opportunity and huge rally ahead.
We think that, by the end of the year, this week could prove the best week of the year to buy stocks. It’s time to get bullish!
To help us find some of the best plays in this selloff, we’re turning our attention to the world’s richest man – Elon Musk – and his promising AI startup, xAI.
It has become clear that the so-called “First Buddy” to President Trump wields a lot of power and influence.
Naturally, we expect him to exert some of that influence to help his own companies, like Tesla (TSLA) and SpaceX.
But in our view, Musk’s most promising company in 2025 is not Tesla or SpaceX. Rather, it is his AI startup, xAI.
Of course, xAI is barely two years old. It is still a private startup, which means you can’t invest directly via stocks.
But we’ve found a promising ‘backdoor’ way to take part in its imminent exponential growth.
If xAI does win the multi-trillion-dollar AI race… and Musk does it again… this stock could absolutely soar.
Uncover the details about this high-potential stock.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
P.S. You can stay up to speed with Luke’s latest market analysis by reading our Daily Notes! Check out the latest issue on your Innovation Investor or Early Stage Investor subscriber site.