After a brief pullback in the larger trend, the bulls have regained control and pushed the S&P 500 higher. The S&P 500 now has a 0.0% drawdown, which means that it's at an all-time high. So, the bull market continues!
Here is a bar chart displaying all S&P 500 bull markets since 1950:
(right-click and open image in new tab to zoom in)
Let's break down what this chart shows:
The blue bars represent the percentage change of each bull market.
The red dots represent the total number of trading days for each bull market.
The blue horizontal dashed line indicates the average percentage change across all bull markets, while the red horizontal dashed line indicates the average number of trading days in bull markets.
For the data nerds, I have added the data table for each bull and bear market.
The Takeaway: I define a bull market as a rally that rises by 20% or more after a previous decline of 20% or more. Currently, this bull market has been ongoing for 570 trading days, and the S&P 500 has experienced a return of 71.1%.
The most recent pullback saw the bears only managing a decline of -4.3%. Despite this brief downturn, price trends, momentum, and breadth have recovered quickly. However, there still remain potential challenges for the bulls. These include early post-election cycle weakness and a growing influx of bearish sentiment entering the market.
That said, these challenges are considered secondary data points. Ultimately, it's important to remember that only price matters… There is nothing more bullish than reaching all-time highs.
Grant Hawkridge | Chief Aussie Operator, All Star Charts
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