Last Week’s Action
Jobless Claims Hit a New Low: The number of jobless claims fell below 1-M for the 1st time in 20 wks.
Thursday, the S&P 500 came within 7 pts of the all-time high. It will keep banging it and then break out. These are the Dog Days of Summer, everybody that is anybody is on vacation.
The market is in pause to refresh mode after an amazing Bull run from 23 March.
The technicals are unchanged, Bullish with a very Bullish bias
What is coming…
Most professionals have made the call that a rotation out of tech and into other areas of the market, such as industrials, consumer discretionary, financials, and energy, will happen soon.
Signs that a rotation are at hand as the RUTX is posting daily gainers, as is the Dow Jones Transportation Average DJT, which tracks the performance of 20 large US airlines, truckers, railroads and shipper.
Since Y 1920, every stock market decline of 35% saw a symmetric price recovery. Meaning the faster the markets fall, the faster the markets recover, and the ratio is 2.5X.
Given the speed of the Y 2020 fall, this tells me that the major US indexes will mark new highs before the end of the Summer and rally hard into the November elections.
Have a healthy week, Keep the Faith!