It's been more than a year since the major U.S. indexes made new highs, but as investors continue to look for answers in this muddled market, one veteran technician explained that history dating back to the Truman administration indicates the equity market may remain placid for a long time to come.
"This environment is a tricky juncture," Louise Yamada said Friday on CNBC's "Trading Nation," referring to the Wall Street angst surrounding the potential for a summer rate hike. And it's that very potential for a second hike that has Yamada examining the charts from 60 years ago.
Given the current economic backdrop, the founder of Louise Yamada Technical Research Advisors laid out her case for why the Dow and the S&P could remain range-bound between the peak in May 2015 and the low from February 2016 for years to come. She pointed to 1946, when interest rates were raised for the first time following a bull market in bonds that began after the 1932 lows. Thereafter, there was a major drop in the equity markets before a limited range set in that lasted into 1949.