This Is What Happens To The Stock Market After Rallying 15% In 3 Months

For all the bears crying foul over the current market rally, Bespoke Investment Group has some interesting research: market rallies of 15 per cent or more are more often than not followed by greater gains.

Bespoke tallied three-month returns back to the late 1920s and found after a market rally in excess of 15 per cent, the following three months were positive 77 per cent of the time, averaging a 3.2 per cent increase.

The S&P 500 has only run up 15 per cent in a three month period 36 times, including the current rapid ascent.

Below, a look at the S&P rallies.

Chart

Photo: Bespoke Investment Group

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