Our work shows that calls for this Bull Market’s end are premature if not uncalled for.
We here at HeffX-LTN believe that stocks will break out to all-time highs this year.
At the end of Y 2018 our The Bulls Vs The Bears indicator, which is something we watch carefully fell below 1.0, and this indicator has a very good track record as a contrary indicator.
Each time our BvB indicator rose to record or near record highs in Y 2018, the S&P 500 Index entered correction territory. And, as of the Key reversal confirmed after Christmas an opposite trend in the patterns is setting up nicely.
Bearishness was so widespread that the market had a technical reversal, bounced, and is continuing North, and the fundamentals are confirming it.
A lot of these elements are coming around in the right direction (North) in here, and the markets are doing extremely well YTD.
- Russell 2000 +7.8% YTD
- NAS Comp +5.9% YTD
- DJIA +5.4% YTD
- S&P 500 +5.3% YTD
The S&P 500 closed out the 3rd week of January out of the Q-4 Y 2018 correction, and the benchmark index now on its longest win streak since August. Up 4 weeks running on signs US-China trade tensions have eased, and encouraging Q-4 earnings reports.
All of the above, and more, factors are driving a year-long strong market move North, that could see the S&P 500 up 15% (or higher) from current marks by this year’s end.
I like the 3,150 SPY #, the S&P closed Wednesday at 2,638.66 above it 50-Day MA at 2619. The volatility is not unhealthy, traders make money when the market is not asleep.
All of my Key technical indicators for SPY are Bullish to Very Bullish near term, Neutral in the long term as of Wednesday’s close in NY.