US large-cap growth stocks flash bullish momentum signal, SentimenTrader says
IWF•IWF•IWF•IWF•Large-cap US growth stocks triggered a signal that has historically been associated with stronger returns over the following year. The signal occurs when the iShares Russell 1000 Growth ETF gains at least 20% in six months after first declining over six months.
SentimenTrader's Jay Kaeppel said large-cap US growth stocks have triggered a historically bullish momentum signal, offering a positive counterpoint to concerns about weakening market breadth and rising interest rates. The signal occurs when the iShares Russell 1000 Growth ETF gains at least 20% over six months after first posting a six-month decline.
The note cited deteriorating breadth, choppy price action and higher interest rates. The S&P 500 lost 0.45% in September but remained up 14% year to date. Kaeppel cautioned that no signal is guaranteed to work the next time, while saying the recent momentum was favorable for investors with a longer-term timeframe.
