It only takes a 2-day decline of less than 1% for all the bears to emerge from their hibernation.
The S&P500 is up 9.14% year to date and the NDX is up 7.7% in the same timeframe. When big tech is outperforming, it is a sign of a thin rally, and when the same stocks fall more sharply than the general market, it’s a harbinger of disaster.
When the FED ramped up rates faster than at any other time in the past 50 years, they were going to force a market decline and push the economy into recession. Now, when they are going to delay lowering rates, their caution will burst a supposed market bubble.
The truth is that the U.S. economy has been and is incredibly strong.
The Unemployment Rate remains at or near a 70-year low.
To look at jobs another way, there are 0.7 unemployed people for every job opening or 1.43 job openings for every unemployed person.
The TPA Market Snapshot shows that the market rally is broad with 62% of Russell 1000 stocks trading above their 50DMA and 72% of the index trading in a long-term uptrend or the 50DMA above the 200DMA.
TPA has been explaining in the past few weeks, in the TPA-RRG reports, that the strongest stocks in terms of relative strength and relative momentum are Industrials. This indicates not only a broadening in the market rally, but underlying strength in the U.S. Economy,
Technically, the breakout to a new S&P500 high leaves no real technical resistance for sellers to hang their hats on.
Jeff Marcus founded Turning Point Analytics (TPA) in 2009 after 25 years on trading desks and 13 years as a head trader to provide strategic and technical research to institutional clients. Turning Point Analytics (TPA) provides a unique strategy that works as an overlay to clients’ good fundamental analysis. After 10 years of serving only large institutions, TPA now offers its research services to mid and small managers, RIA’s, and wealthy sophisticated individuals looking for a way to increase their returns and outperform their peers.
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