Even though stocks are trading around all-time highs, CFRA’s Sam Stovall thinks Wall Street isn’t bullish enough.
According to the firm’s chief investment strategist, an under-the-radar historical trend suggests the S&P 500 will continue to reach record levels through December. He credits a phenomenon that’s only happened 28 times since WWII.
Stovall highlighted the pattern in a chart on CNBC’s “Trading Nation.”
“There’s something special about this year. We had a positive move in the market in both January and February,” Stovall said on Thursday. “February is the second worst month of the year — second only to September. It’s usually a digestive month.”
When the market is up the first two…