BROAD STOCK MARKET UPDATE (11:45 pm EST)
I am posting a late blog because I was traveling today and was unable to analyze the markets until late in the evening. The big news today is that the DOW broke and closed above its all-time high of 14,198. The significance of this is debatable, but it does reflect optimistic investor sentiment at the moment in the broad stock market and is likely connected to the relief many people are feeling now that the sequester "crisis" has passed seemingly without incident (although it will take time for the full impact of the budget cuts to be felt). The breaking of the all-time high in the DOW was accompanied by a negation of several bearish technical signals that had manifested over the last week. Strong bullish momentum signals also appeared today in the S&P 500 and NASDAQ charts. Despite these bullish technical signals, there are several cycle and timing factors that make these markets potentially unstable right now. We will remain on the sidelines and will wait to see if this sudden optimism in the markets can persist.
I am posting a late blog because I was traveling today and was unable to analyze the markets until late in the evening. The big news today is that the DOW broke and closed above its all-time high of 14,198. The significance of this is debatable, but it does reflect optimistic investor sentiment at the moment in the broad stock market and is likely connected to the relief many people are feeling now that the sequester "crisis" has passed seemingly without incident (although it will take time for the full impact of the budget cuts to be felt). The breaking of the all-time high in the DOW was accompanied by a negation of several bearish technical signals that had manifested over the last week. Strong bullish momentum signals also appeared today in the S&P 500 and NASDAQ charts. Despite these bullish technical signals, there are several cycle and timing factors that make these markets potentially unstable right now. We will remain on the sidelines and will wait to see if this sudden optimism in the markets can persist.
RSS Feed