“As we head in to 2-H the S&P 500 is up 14.4% YTD“– Paul Ebeling
Wednesday marked the last day of Q-1 and investors have turned their attention to Q-3 and 2-H Thursday.
The stock market has done incredibly well so far this year. The S&P 500 and NAS Comp have consistently posed new highs, often daily.
The pace of FANNG+Microsoft account for trillions in market cap has helped drive the S&P 500 to new heights weekly over the last several wks.
The S&P 500 has risen about 8% for the Q and has gained 14.4% so far for this year.
The Big Q: Can ws expect a repeat of performance in 2-H?
The Big A: Anything is possible, particularly with the Fed’s accommodative monetary policies.
A glance at the chart above shows just how strong the recent trend has been. For the most part, the 50-Day MA has been a pretty good guide, with many dips to this area finding support and legging up again.
The 4,238 mark was the prior all-time high from early May and was a Key mark in the wks since. Breaking out over this mark, then retesting it and finding as support strengthen the Bull case.
Until proven wrong, Bulls will continue to assume that the 50-Day and 10-wk MAs will be support.
No matter what you hear from the media pundits the market not running on hot air.
So, with this reopening economy, the easy-money policy from the Fed and the Bulls’ case is solid. That plus we get earnings in a couple wks too, which could help drive the benchmark index up to that 161.8% Fibo extension at 4,350, there a shallow dip would be healthy.
Pay attention, it is your money so your responsibility,
Have a positive day, Keep the Faith!
