Why Stocks May Keep Rising Through Summer

​Despite early fears that tariff chaos or weak data would derail the market, stocks are showing remarkable resilience—and some key technical indicators suggest the rally could last well into the summer.

According to analysts, the strongest signal comes from market breadth—a measure of how many stocks are participating in the rally. In May, the S&P 500’s advance-decline line returned to record highs, showing that gains aren’t just limited to a few mega-cap names. This broad participation is a classic sign of a healthy, sustainable uptrend.

Adam Turnquist, technical strategist at LPL Financial, points to a sharp rebound in the percentage of S&P 500 stocks in uptrends, now sitting at 60%, up from under 30% in April. The turnaround has been especially dramatic in tech stocks: fewer than 10% were in uptrends in early May—now that number is closer to 88%. With tech making up over 30% of the index, this is a key driver of market momentum.

Another bullish signal? The recent trigger of a Zweig Breadth Thrust, a rare technical pattern that tends to precede continued market strength.

Even beyond the U.S., the rally has broadened. Major indexes like Germany’s DAX and Canada’s TSX hit new cycle highs in May, confirming that the strength is global.

Still, strategists warn that risks remain. If the rally pushes stocks into overbought territory by mid-summer, it could set the stage for a pullback heading into fall. And while economic data hasn’t flashed a clear recession signal yet, investors are closely watching for any labor market deterioration that could shift sentiment quickly.

Bottom line: With broad participation, improving technicals, and Big Tech back in the lead, stocks appear poised for more gains—at least for now. The “sell in May” crowd may have missed the run, and summer could still have legs.







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