Research Points to Steady Market Highs, but I'm Not Convinced

The market's strength continued last week, with new all-time highs made in the Dow Jones Industrial Average and the S&P 500. From a technical perspective, that's significant - but more for what it doesn't prove. You see, through Wednesday, the Dow had made higher closes on nine straight days for just the seventh time in the last 36 years. According to Nautilus Investment Research, the six months following each string of nine successive up closes in the Dow showed an average gain of 10.4% - with each of the six showing positive results (the smallest gain was 4.7%). But here's the problem with that: First, this a very small sample size, so while this represents an interesting trend, it's a mistake to take this as conclusive proof. Second, with the U.S. election season vitriol blazing away, and global economic uncertainty abounding, you should take this quantitative analysis with a grain of salt. Despite the strength of the post-Brexit "march to new all-time highs," the speed of the rise has slowed considerably, and the pullback we saw in yesterday's trading confirms that. Here's what to do about it... Tags: markets To get full access to all Money Morning content, click here About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience – for free . Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors. Disclaimer: © 2016 Money Morning and Money Map Press. All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. 16 W. Madison St. Baltimore, MD, 21201. The post Research Points to Steady Market Highs, but I'm Not Convinced appeared first on Money Morning - We Make Investing Profitable .