Friday, the preliminary University of Michigan Index of Consumer Sentiment (MSI) for March increased to 83.0 from the final reading of 76.8 for February. The March reading is the highest since August 2020.
The Key takeaway from the report is that the improvement was driven by gains across all socio-economic subgroups and on optimism about the increasing number of US states that are opening up.
Thursday marked the 1-yr anni of the UN’s WHO declaring COVID-19 a global pandemic. And that day the DJIA confirmed what I said 3 wks prior that the VirusCasedemic would disrupt the world’s economy and bring on a Bear market and instant recession in the US. It happened right on schedule.
Then less than 2 wks later on 23 March 2020, there was a Key reversal in the S&P 500 pattern which triggered the continuation of the longest Bull market in history that is still hammering. Also noted in this column if you recall.
In the face of a the questionable and unprecedented threat President Trump, the Fed with the world’s central bankers, and lawmakers stepped and acted together to support this unquestionable, unprecedented V-Shaped economic recovery and the financial markets responded and forcefully turned due North.
Note: the rise in interest rates is not a negative, but a positive sign that the nation is a strong economic growth mode.
Friday, the benchmark US stock market indexes finished at: DJIA +293.05 at 32778.64, NAS Comp -78.81 to 13319.88, S&P 500 +4.00 at 3943.34
Volume: Trade on the NYSE came in at 948-M/shares exchanged.
HeffX-LTN’s overall technical outlook for the major US stock market indexes, sans the NAS Comp which is consolidating, is Bullish with a Very Bullish bias for the wk ending 12 March 2020.
- Russell 2000 +19.1% YTD
- DJIA +7.1% YTD
- S&P 500 +5.0% YTD
- NAS Comp +3.4% YTD
Looking Ahead: Investors will receive the Empire State Manufacturing Survey for March and Net Long-Term TIC Flows for January Monday.
Have a healthy weekend, Keep the Faith!