This closely watched stock-market indicator shows the current rally is poised to extend through year end

A lightning-fast rebound in the U.S. stock market in recent weeks has driven the S&P 500 index to book its biggest three-week percentage gain in over three years, and there is still room for the rally to continue into the year end, according to DataTrek Research. 

The correlations between some sectors in the large-cap S&P 500 SPX and the major index are consistently hovering around their five-year average level, which is sending some positive signals as investors “see clear skies ahead” and are willing to pick and choose between…