Banks Are Telegraphing Where Stocks May Head Next -- but Is Anyone Paying Attention?
Investing on Wall Street comes with undeniable ups and downs. Although the stock market has been a proven moneymaker when examined over multiple decades, it's completely unpredictable over the short term.
Since this decade began, investors have had their resolve tested by two bear markets (2020 and 2022). With the ageless Dow Jones Industrial Average (DJINDICES: ^DJI), benchmark S 500 (SNPINDEX: ^GSPC), and growth-fueled Nasdaq Composite (NASDAQINDEX: ^IXIC) all rallying more than 20% from their 2022 bear market lows, investors are left to wonder if the major indexes will continue motoring to new highs, or if the ghosts of the 2022 bear market will reappear.
While there is no such thing as a perfect indicator when it comes to forecasting short-term directional movements for the major indexes, there are plenty of economic datapoints and metrics that strongly correlate to short-term moves in the broader market. At the moment, America's banks appear to be telegraphing where stocks are headed next. The big question: Is anyone paying attention?
Source Fool.com
