“The Bull trend is still North on the rotation, consolidation and testing” — Paul Ebeling
My work shows the benchmark US stock market indexes are now Bullish with a Very Bullish bias in here. As the CBOE Volatility Index (VIX) dropped 16.1% to 20.69, as investors reduced their hedging exposure amid the Bullish price action in the market.
What happened last week
The DJIA set intraday record highs every day last wk, rising 4.1% and closing at a record high. The Russell 2000 (+7.3%) and S&P 500 (+2.6%) set new highs for the 1st time in a month while the NAs Comp (+3.1%) came out of correction mods with a 3% gainer. And every sector in the S&P 500 contributed to the wkly advance, with some investors fearful of getting left behind in the rally.
S&P 500 moved to a new high, faded and roared back to a new all-time closing high.
NAS Comp gapped open up over the 50-Day EMA and then rallied to overtake the 50-Day SMA. After the 3-day fall, the NAS Comp put in a day up, a day down pattern but moving higher in a solid relief bounce. As the Nasdaq was holding a close over the 50-day EMA as shorts closed out. Several big tech NAS names rose, but many are still weak and just bounced after their patterns had been shredded, but they will come back as buy pivots are marked.
What to expect this week
This stock market has shown a propensity for follow-through buying or perhaps we should just say FOMO buying, driving major indices at record highs.
Money is still flowing flowing in, in record amounts and the world markets are overall Bullish on this ongoing V-Shaped economic recovery. Again, if this wk news is as good as last wks we should continue this Bullish trend.
However, pay attention, the market can reverse on a dime, and remember it is your money so your responsibility. watch out for Mr. Biden and his taxing ideas after his pork victory.
Have a healthy week, Keep the Faith!