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The Stock Market Sent A Signal In February That Almost Perfectly Predicted This Year's Huge Rally

Dec 19, 2013, 05:01 IST

YouTube/SPCapitallQSam Stovall, market historian extraordinaire

Few people know more about obscure stock market patterns than Sam Stovall, S&P Capital IQ's Chief Equity Strategist.

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When Business Insider asked Stovall for his best chart of the year, he submitted this pattern that basically predicted this year's huge returns. It comes from a March 25 presentation that his team gave to clients.

It illustrates the annual returns for the S&P 500 during years when it closed positively during the first two months of the year.

On average, the S&P gains 24%.

So far this year, it's up 27%.

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That's a breath-takingly small margin of error.

"As always, remember history is a guide, but never gospel," says Stovall.

Check it out.

Business Insider

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