Back in April hardly anyone suspected that we would see one of the strongest stock-market recoveries in history.

Fortunately, our systematic strategy got us back into the market (against skeptical instincts) as favorable evidence began stacking up.

A continued uptrend rising with the speed and strength of the recent rally is unsustainable and common sense dictates that the rate of the ascent must reset in all probability.

We can take a close look at the forward patterns of similar historical outliers: All of them continued in a multi-month, low-volatility uptrend, albeit in a much shallower trajectory than the initial recovery rally from the lows.

What’s more, upon reaching new all-time highs, equities tended to re-calibrate extremely steep rallies via multi-week sideway consolidations.