Technology stocks were among the biggest winners last week and the S&P 500 rallied to set a new high. The broad-based rally is expected to continue as more Americans are vaccinated and the nation looks forward to some form or normalcy. The yield on the benchmark 10-year treasury dipped slightly as inflation concerns were more muted.
On the technical front, we continue to see more evidence mounting for a continued bull market. Last week, one indicator we follow called the Percent Positive Trend for the S&P 500 reached its highest point ever going back to 1997 posting a reading of 91.09%. Basically, this indicator measures the number of stocks in the S&P 500 that are in a positive trend and trading above their bullish support line. This reading has only been above 90% four times since 1997 and is associated with strong bull markets. The chart below provides some insight into what we might expect going forward from this point.
While the results can vary in the short-term, the average return after one year appear to be strong in most cases. While no one can predict where the market will go from here, we will keep a close eye on developments and update you.
If you have any questions, please contact me. |
The Markets and Economy
Offices in Chicago, Kansas City, St. Louis, Naples & Valparaiso.
The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is an unmanaged, market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System.
Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
Consult your financial professional before making any investment decision. You cannot invest directly in an index. Past performance does not guarantee future results.
Note: All figures exclude reinvested dividends (if any). Sources: Bloomberg, Dorsey Wright & Associates, Inc. and The Wall Street Journal. Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly.
Securities offered through Triad Advisors, member FINRA/SIPC. Imvestment advice offered through Resources Investment Advisors, LLC, an SEC-registered investment adviser. Resources Investment Advisors. LLC and Vertical Financial Group are not affiliated with Triad Advisors.
|