The macroeconomic headwinds, including geopolitical issues, high inflation, and the Fed’s monetary policy tightening, have worried investors, leading to heightened volatility in the market. This is evident from the CBOE Volatility Index’s 28.4% year-to-date returns. However, the S&P 500’s significant gains since mid-June indicate a new bull market, according to Ned Davis Research (NDR).
A note from NDR stated, “The percentage of stocks at 21-day new highs, [the] percentage of stocks at 63-day new highs, and the percentage of stocks above their 50-day moving averages, are higher than not only bear market rally medians, but the new bull market medians as well.”
