Historical Trends Suggest Major Stock Market Volatility and Weakness In The Months Ahead
Historical Trends Suggest Major Stock Market Volatility and Weakness In The Months Ahead. Troy Bombardia is well known for his astute analysis on the stock market and trading based on historical trends. He notes that huge swings in volatility in 2003 resulted in mostly bearish returns for the S&P 500 in the months ahead (See chart and table below). Today we appear to have a similar situation. The market has recently swung from bear market territory of minus 20% below one-year highs to more than 33% of S&P stocks at eight week highs. That to us suggests stock market weakness for the next two to six months amid more high volatility.