The S&P 500 triggered a rare signal that could mean bigger gains ahead, Canaccord says

A trader works on the floor of the New York Stock Exchange.
Adam Jeffery | CNBC

Stocks could be primed for strong gains over the following year after a rare market signal was triggered this week, Canaccord Genuity's Tony Dwyer said in a note Tuesday.

The firm's chief market strategist noted that at least 80% of all S&P 500 stocks were higher on Monday. Those broad gains came just after the broader market index hit a 30-day low while its 50-day and 200-day moving averages were still in an uptrend. All of this triggered a "rare thrust signal" for only the 10th time since 1962.