In the prior 13 instances when the S&P 500 closed above its 200-day average for at least 242 consecutive days, with the index less than 3% below a record, the gauge proceeded to post a median gain of 7.2% in the next six months, advancing in all but two cases, SentimenTrader's analysis found.
"Consistent momentum of this type has historically led to further upside in the world's most benchmarked index," said Dean Christians, senior research analyst at SentimenTrader.
"While a consolidation around the election is possible, the big picture heading into the most seasonally strong period of the year suggests investors continue to give the market the benefit of the doubt," SentimenTrader's Christians said.