U.S. Money Supply Recently Did Something Not Observed Since the Great Depression -- and It Historically Signals a Big Move in Stocks

It's been nothing short of a banner year for Wall Street. In October, the ageless Dow Jones Industrial Average (DJINDICES: ^DJI), benchmark S&P 500 (SNPINDEX: ^GSPC), and growth-powered Nasdaq Composite (NASDAQINDEX: ^IXIC) celebrated their two-year anniversary of the current bull market. Following the election of Donald Trump for a second (nonconsecutive) term as president, all three stock indexes soared to record-closing highs.Despite these phenomenal returns, stock market corrections and bear markets are a normal and inevitable part of the investing cycle.Although there's no predictive tool or forecasting metric that can, with concrete accuracy, forecast short-term directional changes in Wall Street's major stock indexes, there are a small number of events and data points that have strongly correlated with sizable moves higher or lower in the Dow, S&P 500, and Nasdaq throughout history. Investors occasionally lean on these forecasting tools in an attempt to gain an edge.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool