“The Bulls are confident and their money is flowing” — Paul Ebeling
Last weeks action opened February with a big bang as investors bought the dip and and drove the market indexes to new record highs.
The stock market rebounded swiftly from the last wk in January’s decliner, with the S&P 500 finishing higher in all 5 sessions and ending the week with a 4.7% weekly gainer. The Russell 2000 gained 7.7%, the NAS Comp gained 6.0%, and the DJIA was up 3.9%.
All 11 S&P 500 sectors posted wkly gainers, 10 of which advanced between 2.3% (utilities) and 8.3% (energy). The healthcare sector (+0.5%) lagged.
Economic data was seen as positive for the market because if it was good, it showed the economy was improving, which suggests greater earnings potential and if it was not good, it supported the calls for additional fiscal aid/relief/stimulus. And so it is in this bull market.
All of our Key technical indicators are Bullish with a Very Bullish bias in here.
What to expect this week, more of the same as the momentum is strong and the Cboe Volatility Index (VIX) dropped 36.7% to 20.95, as investors dialed back their hedging exposure.
The trend is North, and as we all know the trend is our friend and we always take what the market gives.
Pay attention, the market can reverse on a dime, so remember it is your money and your responsibility.
Have a healthy week, Keep the Faith!