Ed Yardeni: This indicator shows us that the markets are just starting their rally

The winning series in the markets is far from over. Edward Yardeni, who has been working for Wall Street for decades, predicts that the shares will be over the past historic highs this year. He refers to the timetable that suggests the turnaround in question.

"At the end of last year, the ratio between bulls and bears fell below 1". - says Yardeni Research president to CNBC.

Whenever the ratio index has risen significantly to a new record or close to such a level, Yardeni has found that the S & P500 is entering a correction zone. In this case, it seems that the opposite scenario is developing.

"The bearish attitude has taken over everything, but the market has got its technical rebound, and now, fundamentally, the market is going in the right direction," Yardeni points out.

This is the scenario he had foreseen before and on 26 December. The shares made a historic rebound from the Christmas sale. According to Yardeni, investors were too pessimistic about the likelihood of recession, the Fed's policy and the trade war.

"Many of these factors seem to be getting set in the right direction, and for now markets are doing well." - notes the strategist. According to him, these conditions will drive the markets to new historical peaks. He adheres to his 3100 forecast at the S & P500.

Source: CNBC

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