US Stocks Extend Momentum Rally to Fresh All Time Highs

US Stocks Extend Momentum Rally to Fresh All Time Highs

US Stocks Extend Momentum Rally to Fresh All Time Highs


US stocks extended to fresh all-time highs, with the S&P 500 Index marking its longest winning streak in 4 months, as speculation grew for looser global monetary (stimulus) policies while a better-than-forecast profit from JPMorgan Chase & Co. (NYSE:JPM) boosted optimism for bank earnings.

The S&P 500 has risen in 10 of the last 12 days, rising 8.2% to erase a 5.3% dive following the Brexit referendum.

JPMorgan climbed 1.5% to pace gains in banks, adding momentum to a post-Brexit-vote rally that vaulted equities to records for the 1st time in more than 13 months.  While JPMorgan’s results exceeded predictions, its quarterly profit fell 1.4% in a period where banks are expected to be among the weaker/est.

Global equities rose Thursday as speculation grew that Japan’s Prime Minister Shinzo Abe is contemplating Bernanke style “helicopter money”, which involves the central bank directly funding government spending.

The Bank of England (BOE) left its Key rate at a record low and signaled it’s readying stimulus for August as the economy struggles from Britain’s vote to leave the EU.

US share prices have added almost $2-T since 27 June, an amount that ranks among the biggest increases in equity value, as easing concern about economic growth and optimism over earnings combines with speculation the US Fed will hold off raising rates.

Injecting a cautionary note into the rise today, the CEO of the world’s largest asset manager said the current rally may not be justified and won’t last unless earnings pick up. “If we don’t see better-than-anticipated corporate earnings I think the rally will be short lived,” BlackRock Inc.’s Laurence D. Fink said in an interview.

Analysts project a 5.7 percent earnings decline at S&P 500 firms in the second quarter, which would make it a 5th straight drop, the longest streak since Y 2009.


The CBOE Volatility Index (VIX) fell 1.7% today to 12.82, the lowest in 11 months. The measure of market turbulence known as the VIX has slipped 50% since reaching a 4-month high on 24 June.

In Thursday’s trading, nine of the S&P 500’s 10 main industries rose, with banks boosting financials, while raw-materials climbed to their highest in a year.

Surging airline and railroad stocks lifted industrials to a record amid the group’s longest rally in 18 months.

Utilities slipped for the 3rd time in 4 days, after reaching the highest level ever last week.

While banks were adding the most to the rally in financials, insurers were also contributing, rising to their highest in 5 weeks.

Raw material producers rallied for a seventh session, their longest streak since October.

A Bloomberg gauge of US airline stocks increased 3.1% to a 2-month high, bringing its climb in 6 sessions to 16%.

Technology companies in benchmark increased 0.8.

Thursday, the major US stock market indexes finished at: DJIA +134.22 at 18506.34, NAS Comp +28.33 at 5034.06, S&P 500+11.31 at 2163.73

Volume: About 6.5-B/shares exchanged hands on US exchanges, 10% below the 3-month average.

  • DJIA +6.2% YTD
  • S&P 500 +5.9% YTD
  • Russell 2000 +5.9% YTD
  • NAS Comp +0.5% YTD
HeffX-LTN Analysis for DIA: Overall Short Intermediate Long
Bullish (0.31) Neutral (0.19) Very Bullish (0.50) Bullish (0.25)
HeffX-LTN Analysis for SPY: Overall Short Intermediate Long
Bullish (0.25) Bullish (0.25) Bullish (0.35) Neutral (0.14)
HeffX-LTN Analysis for QQQ: Overall Short Intermediate Long
Bullish (0.32) Neutral (0.10) Very Bullish (0.56) Bullish (0.31)
HeffX-LTN Analysis for VXX: Overall Short Intermediate Long
Bullish (0.32) Neutral (0.10) Very Bullish (0.56) Bullish (0.31)

Stay tuned…


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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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