On Friday the popular averages continued to the upside. The Dow Jones Industrial Average, Nasdaq Composite, S&P 500 and Russell 2000 again attained all-time intraday and closing highs.
Consumer prices barely rose in December. Retail sales improved in December. After the upcoming three-day weekend, fourth quarter corporate earnings reports will start flooding the financial news. Meanwhile the prices of crude oil and gold rose on Friday.
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 all-time intraday and closing highs on Friday. There’s no sign that the hunger for stocks has abated. Many investors have remained on the sidelines, but they may soon join the party due to FOMO (Fear Of Missing Out). Once they have feasted, that could put in place a market top.
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