Of course, higher in a year is very different than higher next week. While breadth thrusts point to a higher market in the future, they’re often followed by short-term drops. The last one, for instance, occurred on June 5, when May’s payrolls data showed a massive increase in the number of jobs that the U.S. economy had added. The market peaked one day later, and then the S&P 500 dropped 7% over just three days. Still, even including that drop, the index has gained 8.8% since then.
The takeaway: Dips are to be bought. “The market is not going straight up,” Lerner says. “
But bull market rules apply.”
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