Looking back in history, March can almost always bring the green to the stock market. Paul Hickey, co-founder of Bespoke, said the S&P 500 has increased on average from 2.39% from 2009 to 2018.
Hickey built his bullish case from the chart that shows the usual prosperity at the S&P 500 in March.
Back in 1983, those profits were 1.35%. Hickey emphasized that the period from March to April each year is the best period of the market for the year. The S&P 500 has increased nearly 12% since the beginning of the year, and is more than 19% since the lowest level in December. In addition, he said the market is still quite strong. However, that does not mean that the market is not vulnerable to short-term troubles.
Hickey is uncovering overbought conditions in the market. But with a good sentiment in the analysis, he said that with a good signal of a US-China trade agreement and more moderate moves from the US Federal Reserve, any chaos of The market will only take place in the short term.
Previously, the market also reacted strongly to FED’s decision to tighten monetary policy in October to early December.