Based on History, This Old-School Indicator Spells Trouble for Wall Street
Over long periods, Wall Street's major stock indexes point decisively higher. But when they're examined over short periods, such as months or even a year or two, the directional movements in the Dow Jones Industrial Average (DJINDICES: ^DJI), S 500 (SNPINDEX: ^GSPC), and Nasdaq Composite (NASDAQINDEX: ^IXIC) become far less predictable.
For example, the Dow Jones, S 500, and Nasdaq Composite pushed to multiple record-closing highs in 2021. This was followed in 2022 by all three indexes plunging into a bear market and producing their worst full-year returns since the financial crisis. Meanwhile, through the first five months and change of 2023, it's been a running of the bulls once more for megacap growth stocks.
Image source: Getty Images.
Source Fool.com
