Stock Market May Be Setting Up for a Monster Rally

Stock Market May Be Setting Up for a Monster Rally

CHAPEL HILL, N.C. — Good news: The stock market is dropping. The Dow Jones Industrial Average, while ending Thursday well off its early triple-digit decline, fell for the sixth time in nine days to close at its lowest level in 2½ weeks. Why is that good news? Because by dropping in October, the stock market creates the preconditions for a significant rally through the end of the year. This year appears to be quite closely following at least the beginnings of that script.

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