A JPMorgan Chase & Co. indicator is flashing a resounding buy signal in US stocks, after it hit a threshold that typically precedes better-than-average gains.
The bank’s US Tactical Positioning Monitor, which measures clients’ exposure to American equities, hit a level that reflects an “attractive set-up” for the S&P 500 Index, according to a note Wednesday from a team led by Andrew Tyler, JPMorgan’s head of US market intelligence. The stock gauge has historically gained around 3% in the subsequent 20 days after a similar four-week change in positioning, compared to a roughly 1% gain in all periods, according to the note.
