Three (3) key signals paint a bullish picture for US Stocks, this highlights a strong technical and sentiment-based recovery in US equities following a volatile March selloff, which was heavily influenced by geopolitical tensions from the US-Iran conflict and associated oil price spikes.
US stocks have rebounded sharply, with the S&P 500 rallying about 8% from its March 30 low and adding roughly $4.5 trillion in market cap over a short period. This includes the index’s longest winning streak since October 2025. Analysts, particularly from The Kobeissi Letter, point to these aligned indicators as evidence of renewed confidence and potential for further upside.
Improved market breadth especially in Tech/Nasdaq 100: About 65% of stocks in the Invesco QQQ Trust tracking the Nasdaq 100 are now trading above their 10-day moving averages. This is a sharp improvement—a 40-point jump in just five sessions, the steepest since November. For context, that figure bottomed out at only 12% in the second week of March. The breadth has extended to broader indices as well.
Over 70% of stocks in both the S&P 500 and Dow Jones Industrial Average have reclaimed their 10-day moving averages. This suggests the rally is broadening beyond a few mega-cap names. Historically, such sharp reversals in Nasdaq 100 breadth have preceded higher prices 80% of the time over the following 12 months. The S&P 500’s recent performance—its longest streak of gains in months—signals technical healing after the March downturn.
This momentum, combined with the breadth improvement, points to a historic recovery setup according to observers. In March, 26.4% of US publicly traded companies recorded net insider purchases—the highest level in five months. This was up from 20.9% in February and above the 10-year average of 23.5%, marking the second straight monthly increase. Insiders stepping in to buy shares after a pullback is often viewed as a vote of confidence from those closest to company fundamentals.
The energy sector was an outlier, with insider buying dipping to 17.5%, possibly reflecting skepticism about sustained high oil prices amid the conflict. Fundstrat’s Tom Lee has reinforced the optimistic tone, arguing that the market has likely bottomed and that the S&P 500 could climb toward 7,300 later in 2026. He highlighted the market’s resilience, noting that stocks held up or rose even as oil prices surged during the height of geopolitical escalation.
As of early April 2026, the S&P 500 was trading in the mid-6,800s around 6,817 on April 10, recovering from Q1 weakness that saw it down roughly 4-5% amid the turmoil. These signals are primarily technical and sentiment-driven, reflecting short-term healing after a risk-off period. Longer-term support could come from expectations of continued corporate earnings growth, AI-related productivity gains, and any de-escalation in geopolitical risks.
However, markets remain sensitive to oil prices, inflation data, Fed policy, and unresolved international developments. Valuations are elevated in parts of the market, and external shocks could interrupt the momentum. That said, the combination of improving breadth, price action, and insider conviction does paint a constructive near-term picture for US stocks.
After the March shakeout, multiple indicators are flashing green for renewed bullish momentum. Investors should monitor upcoming earnings starting with big banks and geopolitical headlines closely for confirmation.
