S&P 500 closed on a new high again. The market meandered sideways for three of the four days but closed decisively up on Friday. The NASDAQ led indexes higher, which is bullish for a rotation back into tech. All the sectors had a good week. I really like the mega-cap tech names here. They look ready for their next leg higher.
While the indexes didn’t correct significantly over the last 6 weeks, the large growth areas and speculative names (SPAC’s), GME, AMC, and software names all got taken to the woodshed for a 50% trim. The SSIH has been highlighting the underlying weakness, and hopefully you avoided some of the chop. Broadly, the market of stocks looks set to resume the uptrend.
The vaccination data for the USA continues to get more promising. America expects to have 200 million people vaccinated within the first hundred days of the new president. This is very solid, considering Canada ranks 64th in rollouts, mostly due to a shortage of vaccines. This dominance in rollouts by the USA suggests more money rotating into US assets at least until the rest of the globe gets vaccines to distribute. The AstraZeneca vaccine has been problematic, while most of the US inventory is Pfizer, Moderna and JNJ.
Almost all the US sectors are breaking to one-month highs, or breaking downtrends, or making all-time highs. That looks like a solid way to start a larger rally. The transports and industrial’s look bullish. That should be enough to say just get long. Globally we saw a worldwide rally. That’s hard to argue with when all the screens turn green. I am watching to see if the crude oil chart can continue to rally. With jet fuel starting to be consumed, and cars selling like toothbrushes, there should be demand growth. The gold miners look like a theme to be in. Large cap tech, growth names with earnings, and semiconductors look well suited to investment here.
Summary: The $SPX has made two higher weekly closes in a row. All the sectors are looking to participate. With tech, communications services, and consumer discretionary joining the party, who needs a clock saying it’s time to go home? The party is just getting started it would seem. Let’s hit the charts.
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