On Wednesday the popular averages again finished mixed. Nevertheless, the Dow Jones Industrial Average again attained all-time intraday and closing highs, while the S&P 500 reached an intraday record before pulling back.
As expected, the FOMC slightly increased its short-term interest rate targets. And as expected, consumer prices rose more briskly in November. Meanwhile the prices of crude oil and gold fell on Wednesday.
Above is my 3-month chart of the S&P 500 exchange traded fund (SPY). The SPY’s hop above its 50-day moving average on August 27 restored all of my outlook arrows to green followed by only a few days of short term caution. November began what is normally the market’s best performing grouping of six successive calendar months.
The recent parade of record SPY highs has been encouraging, including the intraday record on Wednesday. There are still a lot of people who have remained on the sidelines with their hordes of cash. I don’t expect a market top until after indication of a great number of them suddenly rushing onboard due to FOMO (Fear Of Missing Out).
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