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Ned Davis Research highlighted that the S&P 500 (SP500) currently sits less than 1% from its all-time trading high of 4,818, which was recorded back on Jan. 3, 2022. This marks the sixth longest trading-day gap between record highs.
The financial institution stated in an investor note that the benchmark index’s gap between all-time highs follows the five other largest gaps between highs, which were recorded in 1928, 1954, 1958, 1980, and 2013.
“There have been 14 cases of the S&P 500 going at least one year without an all-time high. After the record has been eclipsed, the S&P 500 has outperformed its long-term average one-, three-, six-, and 12-months later,” Ned Davis Research went on to add.
“One-month returns are not quite as strong (up 71% of the time by a median of 1.8%), suggesting a short-term overbought condition. One year later, the index has risen 13 out of 14 times by a median of 13.4%. A new high after a long stretch often marks a new stage of the bull market rather than its conclusion.”
As of Tuesday, the S&P 500(SP500) and its benchmark tracking exchange-traded funds (NYSEARCA:SPY), (NYSEARCA:VOO), and (NYSEARCA:IVV) all look to open up in negative territory as the 2024 trading year kicks off.
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