“The trend is your friend until the end.” The trend in the S&P 500 has been extremely Bullish, and the market sees it continuing.”–Paul Ebeling
The combination of strong profits plus free money from the Fed is driving this market, profits are mother’s milk stocks and we expect that this Bull will keep running for a long while. This is good as over 100-M Americans own stocks directly or indirectly, and they got wealthier.
What happened last week
The PPI (producer price index) mirrors the CPI and core CPI(consumer price indexes) beat big M-M and Y-Y. Existing home sales spied and lumber is falling, the move Topped.
Thursday, US stocks bounced and starting to work on some Northside setups on growth stocks.
The S&P 500 and DJIA bounced from their 50-Day MAs while the S&P 400 recovered to that mark. We expect the rally to pause, refresh and extend this wk.
What to expect this week
Expect that the Bull market will pause refresh consolidate and resume the move North this wk.
Separately, there are reports that the GOP will soon present its infrastructure stimulus counterproposal, that the White House and the EU appear prepared to soften their stance on some tariff issues involving metals and other goods like bourbon, and that it might not be an easy path for Democrats to win concessions on their tax policies.
But always remember that a volatile, fast moving stock can reverse on a dime. So, pay attention, it is your money and your responsibility,
Have a healthy week, Keep the Faith!