The S&P 500 Index Just Did Something for Only the 5th Time in 50 Years -- History Says a Monumental Move Could Follow
Investment
The Motley Fool

The S&P 500 Index Just Did Something for Only the 5th Time in 50 Years -- History Says a Monumental Move Could Follow

July 28, 2025
12:49 AM
4 min read
AI Enhanced
investmenteconomymoneystockstradingtechnologyconsumer discretionarymarket cycles

Key Takeaways

Since hitting lows in April, the S&P 500 has bounced back and is now on track to turn in a solid year.

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4 min read

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investment

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Published

July 28, 2025

12:49 AM

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The Motley Fool

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Key Topics
investmenteconomymoneystockstradingtechnologyconsumer discretionarymarket cycles

From what the evidence shows, From an analytical standpoint, The market has been buzzing (something worth watching)

After nearly tipping into bear territory in April, the S&P 500 index has stormed all the way back to hit all-time highs and is now up 8% on the year as of July 23 (something worth watching)

While volatility has calmed down a bit since President Donald Trump first announced high tariff rates back in April, nothing has been able to slow the market down, despite renewed focus on tariffs, some data indicating the economy is slowing, and increasing concerns the U

However, Government's fiscal situation, in today's market environment

Additionally, In fact, the market just did some for only the fifth time in 50 years, and history says that a monumental move could

Can the bull market keep going, in light of current trends

As reported by MarketWatch, Ryan Detrick, the chief market strategist at the Carson Group, recently crunched some data and found an interesting stat the recent performance of the broader benchmark S&P 500

Image source: Getty Images

Additionally, On July 21, the S&P 500 closed above its 20-day moving average for 60 straight days

On the other hand, Investors use moving averages to chart levels that could indicate some kind of breakout, meaning stocks heading higher

It's used more by nical strategists, but can be useful for all investors when it comes to identifying trends or sentiment (fascinating analysis) (something worth watching)

The S&P 500 has only achieved this feat four other times dating back to 1975, according to Detrick

This analysis suggests that good news for investors ing this analysis is that when the market has above its 20-day moving average for 60 consecutive days in the past, good things have t to happen, with the average return between 20% and 26% over the next year

Looking out one month, three months, six months, and a year from this event, there are only a few instances in which the market turned red. "It's what it is, yet another clue this bull market has legs," Detrick wrote in a re note

Moreover, As of this writing on July 23, the S&P 500 looks to be 1, given the current landscape. 9% above its 20-day moving average

At the same time, ^SPX data by YCharts History rhymes but rarely repeats When it comes to looking at broader market trends, historical data is a great resource

However, history rarely repeats itself exactly, even if different situations often have parallels

That's why market downturns and recessions usually are unexpected, even when people are constantly worrying and watching, given current economic conditions

Given the amount of volatility the S&P 500 has experienced this year, it's quite possible the roller-coaster ride continues, and then the market still ends much higher one year from now

After all, the market is still dealing with high uncertainty tariffs, potential concerns inflation reigniting, and a potential slowdown of the labor market and economy

At the same time, So I think investors would be right to remain somewhat cautious and remember that market structure has changed a lot over the past several decades

Moreover, That said, none of these concerns are exactly new, economic data has largely held up well, and it's possible that Trump's recent "one, big beautiful bill," which includes trillions in tax cuts, continues to pel economic growth, at least in the near term, in light of current trends

Ultimately, investors are best off trying to take a long-term view, and not buying into individual stocks trading at meteoric valuations or those detached from fundamentals

In contrast, The longer one holds their investments, the smaller the chance they have of losing money, and most long-term investors tend to do quite well.