The popular averages again finished to the upside on Monday. Trading volume was light. Again the Dow Jones Industrial Average, Nasdaq Composite and S&P 500 attained all-time closing highs. Homebuilder confidence remains strong but less so than last month. Meanwhile the price of crude oil rose while that for gold fell on Monday.
Tesla (TSLA +1.4%) achieved all-time intraday and closing highs on Monday. Baird analyst Ben Kallo was heartened by his latest visit to Tesla’s battery Gigafactory in Nevada. He reiterated his Top Pick Outperform rating and $411 price target.
Above is my 3-month chart of the S&P 500 exchange traded fund (SPY). After all-time closing highs were achieved in late May and early June, the 50-day moving average proved supportive during a dip on June 29, then the SPY moved a little higher the next three sessions. The SPY slipped back under the 50-day MA on July 6 before returning above on July 7 and jumping to record closing highs on July 14, 19, 20, 25, 26 & August 7. However, the dips under the 50-day MA on August 10 & 17 made me cautious.
The SPY’s hop above its 50-day MA on August 27 restored all of my outlook arrows to green. Recent record highs keep me optimistic.
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