- Good day for the stock market, but need more follow-through
- 10yr Treasury note yield near key resistance (of 1.9%) level
- Several different markets at critical junctures
- None of the recent market moves have been compelling...yet
- When things DO move, they'll move in a big way
Nice record high for the S&P 500, but need more upside follow-through.
Well we got the new highs in the S&P 500 Index yesterday that everyone was looking for, so it was obviously a good day for the stock market. The DJIA is still slightly below its record highs and the Nasdaq Composite is a hair below its July record highs as well…but they are very, very close, so it certainly cannot be called a divergence. Yes, the Russell 2000 remains 2.7% below its April highs, but it has been playing catch-up during the past few weeks, so the action in the small-caps can hardly be called disappointing.
We must say that the “internals” weren’t great…as volume was less than 3bn shares and the breadth on both the S&P 500 and the NSYE Composite Index were just 1.6 to 1 positive, but given that the NYSE A/D line was able to make a new high along with the SPX…and the tech stocks led the way higher, it’s hard to find much fault with yesterday’s action.
Recent moves cannot be seen as anything more than technical bounces (yet).
However, things could change very quickly…with the Fed’s meeting/press conference on Wednesday and the ISM and employment data on Friday. More importantly, besides the fact that most of the broad averages have yet to make a new high, the S&P’s record is only a very slight new high. Therefore, we are a long was from confirming a breakout in the stock market. In other words, as positive ...