3 charts that show why stocks, oil, & emerging markets could rally by year-end

Stocks and crude oil are gearing up for a rally by the end of the year, according to one leading technical analyst.

The S&P 500 (^GSPC) fell 7% in the third quarter of 2015, its worst quarter in four years. But Katie Stockton, chief technical strategist at BTIG, sees positive signs in the index’s charts.

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One reason Stockton is optimistic on the S&P 500 is that September’s dip to a low of 1,879 failed to break below August’s plunge to 1,876. She expects the index will ultimately form a bullish double-bottom pattern.

“The swift nature of that correction that we saw in August is more characteristic of a bull market correction as opposed to the beginning of a bearish reversal,” said Stockton, who is also vice president of the Market Technicians Association.

Other indices also showed a double bottom, she added. “That’s what we call a shakeout of the weak holders of the market.”

A break...