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Tuesday's 90% Stock Up Day Suggests the Summer Rally Can Continue - BofA

Published 07/20/2022, 11:30 PM
© Reuters.

By Investing.com Staff

Yesterday's 93.4% NYSE advancing stock breadth confirms that the summer rally can continue, BofA Securities technical strategist Stephen Suttmeier said.

"With 93.4% of NYSE stocks advancing on 93.8% of volume, yesterday (7/19) marked a solid 90% up day for US equities, which occurs when both the percentage of advancing stocks and up volume exceed 90%," Suttmeier said in a note to clients. "We view this bullish breadth day as a sign that the summer rebound for US equities can continue."

79 prior observations of an NYSE 90% up day show that the average 65-day return is 5.5%, while the median 65-day return is 6.58%.

So far, Suttmeier looks right, with stocks up broadly on the session Wednesday.

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