If history is an indicator, a real market rally may be brewing.
The market started this week like a rock star. The S&P 500 opening on Monday set an intraday high, fueled by recent positive jobs data in the United States and growing optimism overseas. The Nasdaq and Dow Jones industrial average also posted solid gains at the open.
Analysts at research firm MKM Partners pointed out that in 95 percent of prior instances of the S&P 500 going at least one year without hitting a 52-week high, and subsequently finding a new high after that one-year lag, the benchmark index shot higher over the next 12 months with a median return of 20.8 percent.
"We have been patient over the last few months in anticipating a new high," MKM analysts wrote on Sunday. "Now that we finally have one, history tells us there should be plenty of upside to follow."