Maley and other technical traders are looking for the S&P to hit 3,000 as a sign that it is full speed ahead in stocks — the index closed at 2,973.01 on Tuesday after gaining 0.3% and would need a move of close to 3% to hit the 3,000-point level.
There is a bit of market history that can help keep investor confidence up. July has been historically a good month for stocks.
During summer's first full month, the Dow trades positively 70% of the time, with an average gain of 1%. The S&P 500 is a positive trade 55% of the time, inching up an average of half a percent. All 11 of the S&P 500 sectors rose in the first half of the year, with technology stocks now up by more than 28% year-to-date and even the worst-performing sector, health care, posting a gain of 8%.The two biggest winners have been the Dow itself and the S&P financials sector.
When yields are turning negative on bonds, stocks still lower looks attractive.