Biopharma Investments Trigger Exciting Buy Signals

Shares & Indices Need to Crouch to Spring

The chart above of the S&P 500 illustrates the 'crouch and spring' phenomenon. On a long-term chart like this one whenever you see a red candlestick you have an index, share, crypto, whatever, which is going into a crouch. There is no telling how big the crouch will be but we will have a strong clue that it is over when a smiley (triggered by a rising shorter-term moving average) coincides, as it invariably will, with a broken downtrend line.

There are not many crouches around at the moment. The picture is more of an early-stage bull market. History suggests that, after a buy signal, shares can rise strongly for a long time. This would be especially the case if the GenAI revolution triggers a productivity revolution which drives a massive acceleration in global growth.

I like the productivity explosion theory. GenAI might even help governments to become more efficient.