You just can’t keep a bull market down.
After the worst session since May 12 and a drop of nearly 3% over the last three sessions, the S&P 500 SPX,
With record economic growth and fiscal and monetary support in full force, it’s no wonder that the bulls are pushing the markets higher, even as concerns about new variants of the coronavirus, soaring inflation and the declining stimulus abound.
It turns out that there is also technical support. According to Bespoke Investment Group, when the S&P 500 closed below its 50-day moving average this year, it rose an average of 3.95% over the following week. Since 1945, the average one-week return when the index closes below the 50-day moving average has been only 0.06%.
Now the S&P 500 simply touched the 50-day moving average this week and didn’t close below. Yet the factoid, they say, is proof of the downward buying mentality that drives the markets right now. They of course warn that the firepower won’t last forever, but for now it’s hard to bet against this stock market no matter how rallying bond market seems to send the opposite message.
Keith Lerner, chief market strategist at Truist Advisory Services, adds that reading the S&P 500 headlines masks the fact that the pullback is already further ahead than many had imagined, with just 36% of the S&P 500 shares. now over their 50 days. average, compared to 90% in April. Trading can get “sloppy” over the summer months, but the main trend over the next 12 months remains up, he adds.
Netflix misses Wall Street estimate
Netflix NFLX Streaming Service,
edged down 1% on missed earnings estimates, although its earnings forecast for the current quarter beat analysts’ estimates as earnings hit Wall Street targets.
Mexican Grill Chipotle CMG,
climbed 4%, beating profit estimates and reported a 31% increase in comparable restaurant sales.
Verizon Communications rose 2%, as the telecommunications giant also beat earnings estimates.
CEO Elon Musk, Twitter TWTR,
CEO Jack Dorsey and Ark Investment Management CEO Cathie Wood will discuss bitcoin BTCUSD,
at an event scheduled for noon Eastern Time.
The founder of the DigitalBridge DBRG property investment fund,
Thomas Barrack, was arrested for illegally lobbying for the United Arab Emirates under the Trump administration.
USA, USA, USA – at least on the stock market. The ratio of the US stock market to everywhere else is at unprecedented levels.
A rebound from the second day ES00,
is ahead, with the Dow YM00 futures contracts,
up more than 100 points and SXXP European equities,
also climbing. CL00 oil,
continues to gain, and the yield on the 10-year T-bill TMUBMUSD10Y,
Why actor Ashton Kutcher didn’t go to space this week.
Jurassic fossils have been discovered thanks to Google Earth.
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