Will Momentum Hold?

S&P 500 just shattered records with gains in nine straight days and nine straight weeks.

That is a historic winning streak.

🔹 The index broke above 7,600 for the first time ever, marking the longest daily winning run since 1995. Since bottoming in March, the S&P 500 has surged roughly 20%, adding about 11 trillion dollars in market value in just over two months.

🔹 Nine straight weekly gains have occurred only 10 times since the index was created in 1957. That makes this rally an extremely rare signal. The last time we saw this pattern, the index kept climbing higher for months.

🔹 AI fuels the fire. Tech shares led the charge as semiconductor makers jumped nearly 6% in a single session. Marvell Technology soared 33% after Nvidia's CEO projected a trillion-dollar valuation, while Hewlett Packard raised its AI-driven sales forecast.

🔹 History says buy the strength. In the 10 prior episodes of nine-week winning streaks, the S&P 500 was higher one month later 90% of the time. A full year later, the index was higher in eight of ten cases, delivering an average return of around 10%. Strong momentum tends to compound rather than reverse at this magnitude.

🔹 Consumer spending keeps the engine running. Spending rose at an annualized pace of 9% over the last three months, and the jobs market remains rock solid with openings jumping to nearly two-year highs. That kind of economic fuel keeps corporate profits humming.

The market just gave us a rare gift. Rare streaks often lead to even rarer returns.

What is your move after this historic run?

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