The stock market may be experiencing significant declines, but there are indications of a potential buying opportunity amidst the chaos.

We recently advised our premium subscribers that this could be the best time to purchase stocks this year. Our analysis reveals strong reasons to adopt a bullish stance on the market.

While this perspective might seem unconventional, particularly given the negative tone prevalent in media headlines, which highlight fears of tariffs precipitating a global recession, the market signals suggest otherwise.

For instance, just yesterday, the S&P 500 generated a robust buy signal, a signal that has maintained a 100% accuracy rate in predicting positive future returns since 1990.

S&P 500 Shows Promising Buy Signal

On Monday, March 10, the S&P 500 entered oversold territory with a relative strength index (RSI) dipping below 30 for the first time in over a year. Then, on March 12, the index’s RSI climbed back above 30, indicating a recovery out of that territory.

Notably, this oversold condition lasted only two days, which is technically significant.

Historical data shows that every time the market has entered oversold territory for the first time in over a year, followed by a quick rebound, stocks have consistently rallied over the next six to twelve months.

Every time.

This pattern occurred in July 1996, August 2004, October 2005, May 2010, October 2014, February 2018, and October 2023. In each instance, the market demonstrated sustained upward movement.

Over these periods, stock prices increased six and twelve months later every time, with average forward returns exceeding 20% after twelve months.

Thus, while news concerning the stock market appears bleak, the technical evidence strongly indicates a forthcoming bullish trend.

Rather than signaling an impending crash into bear territory, the market seems poised for a vigorous rebound over the next 12 months.

Conclusion: A Strong Buying Opportunity Lies Ahead

Now is the time to disregard sensational headlines and heed the signals emanating from the market.

Historically, moments of significant volatility and widespread anxiety often present exceptional buying opportunities, or signal the onset of major downturns. The technical data provides clarity on which outcome appears more likely. Currently, the indicators point to a strong buying opportunity and an impending rally.

Looking ahead, this week may unfold as one of the year’s prime moments for stock purchases, encouraging a bullish outlook.

To identify promising investment avenues amidst this selloff, we will focus on the world’s wealthiest individual—Elon Musk—and his ambitious AI venture, xAI.

It’s evident that Musk possesses considerable influence, particularly in his supporting roles with companies like Tesla (Stock-ticker”>TSLA) and SpaceX.

However, we believe that Musk’s most promising endeavor by 2025 is his AI startup, xAI.

While xAI is still in its infancy, being less than two years old and currently privately held, we’ve discovered a potential ‘backdoor’ opportunity for investors to participate in its expected growth.

If xAI succeeds in the multi-trillion-dollar race for AI advancements, and Musk delivers yet again, this stock could experience significant appreciation.

Discover more about this high-potential stock.

_{On the date of publication, Luke Lango did not hold (either directly or indirectly) any positions in the securities mentioned in this article.}

P.S. Stay updated with Luke’s latest market insights by subscribing to our Daily Notes! Explore the latest issue on your Innovation Investor or Early Stage Investor subscriber site.