It has become very risky to doubt the resilience of the market’s $13.2-T Bull run since 23 March.
Going by the short positions of hedge funds, resistance to rising prices is the lowest in 16 yrs.
Everybody in the market has gotten more Bullish as the S&P 500 ran 52% in 5 months. In the past 21 sessions, there has not been a decline of 1%, the longest stretch since January.
The S&P 500 added 0.7% over 5-days, marking its 4th straight weekly gainer. It exceeded the 19 February record high Tuesday to cap the fastest Bear-market recovery in market history. The NAS 100 rose 3.5%, the DJIA was flat
We are in the Dog Days of Summer, and there is a lack of desire to sell rather than rushing to buy except for some select rotating pockets of the market that are still attracting speculators.
We will just have to see if the S&P 500 hitting new highs wakes the market up and entices some new buyers to enter after Labor Day when Wall Street comes back to work. After all there is about $5-T still on the sidelines…
Friday, the major US stock market indexes finished at: DJIA +190.60 at 27930.33, NAS Comp +46.85 at 11311.80, S&P 500 +11.65 at 3397.16
Volume: Trade on the NYSE came in light at 837-M/shares exchanged
HeffX-LTN’s overall technical analysis of the S&P 500 index is Very Bullish bias at the week ended 21 August 2020. The Support is Strong at 3291.9 and the resistance is Nil. The recovery is definitely V-Shaped.
- NAS Comp +26.1% YTD
- S&P 500 +5.2% YTD
- DJIA -2.1% YTD
- Russell 2000 -6.9% YTD
Looking Ahead: Investors will receive nothing important Monday.
Have a healthy weekend, Keep the Faith!