Author: Brett Eversole, DailyWealth.com

Mom-and-pop investors have turned bearish again. But as you’ll see, the return of fear to the market is a surprisingly good sign for future returns.

It’s dropped too far, too fast — and history shows that when shares reach today’s extreme levels, rebounds of 40% or more have often followed.

It just suffered a major sell-off… It’s now hitting record oversold levels… And according to history, that’s a setup for big potential profits (with 33% returns possible over the next year).

Two key indicators show that the market is strong right now. And that tells us this rally can — and likely will — continue.

They just staged one of their strongest eight-week rallies in 15 years, and history shows this setup often leads to massive gains over the following year.