S&P 500 in blow-off phase seeking new high

AS we edge into the 100 months of economic expansion since 2009, the overall market remains unaffected by old age. Major equity indices such as the S&P 500 index continues to break new record highs. Zooming out to see the broader picture of the S&P 500 index on where we are in the current phase of bull market cycle reveals an intriguing price action pattern on the quarterly timeframe. The quarterly timeframe takes into account the performance of the S&P 500 index for each quarter to show if the particular quarter is a positive quarter (green bar) or a negative one (red bar).

Our study has shown that the market can be divided into three main phases, namely:

In the early stages of a bull market, consecutive bullish quarters are a norm. However, once a bearish quarter interrupts the bullish momentum, that will be the time to be on guard for a volatile period ahead.