Average stock reaches a new high

Finally, it happened. The average stock, defined by the S&P equal weight index, closed at a new high, ending its streak of more than 150 sessions without doing so.

We already saw that this hasn't been such a big deal in the past, but a lot of people were talking about it. Anyway, they can stop talking now because the equal weight index caught up. According to the Backtest Engine, there have been 21 times the equal weight index hit a new 3-year high for the first time in at least 150 sessions.

Very short-term returns showed some backing-and-filling, especially in recent decades. 

Longer-term returns were decent. The next three months showed a positive return only 57% of the time, but by four months later, that jumped to 81% of the time. Over the following six months, there were only a few negative returns, and none since 1979.