From Yahoo Finance: 2025-06-07 13:33:00

Investors are optimistic about the stock market rally since April’s lows, but a veteran analyst warns it’s not “real” yet. The S&P 500 hit a record high in February, then fell with tariff announcements in April, only to rebound. Analyst Willie Delwiche says a breakout to new highs is crucial for a lasting rally.

Delwiche, a long-time strategist and professor, warns investors are in a range of emotions. Recent data shows bearish sentiment leading, with a lack of trust in the rally. Delwiche emphasizes the importance of breaking out to new highs to confirm a lasting bull market, rather than a bear-market bounce.

The market is currently stuck in a volatile range, according to Delwiche, but he sees positive signs in international markets. More global markets hit new highs in May than the U.S., indicating broader participation. Delwiche points to daily news cycles shaping market behavior and suggests gold as a potential play in a trading range.

Delwiche highlights gold’s uptrend and relative outperformance compared to US stocks. He advises considering gold in a portfolio given its current momentum. The analyst emphasizes the need for a breakout to new highs to confirm the market’s strength amidst ongoing headline volatility.

Read more: Veteran analyst says stock market rally not ‘real’ until this happens