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Strategies & Market Trends : News Links and Chart Links

SPXL 194.72

-4.6%

Nov 20 4:00 PM EST

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From: Les H	1/10/2024 11:25:43 AM
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The Price-Earnings multiple of the S&P 500 is showing struggle at last July’s high as market participants scrutinize whether an above average valuation is warranted. Stocks struggled to gain traction following Monday’s rally as the US Dollar continue to inch higher, providing a headwind against stocks as per seasonal norms for the first couple of months of the year. The S&P 500 Index closed lower by just over a tenth of one percent, sitting just above a point of support at the 20-day moving average of 4729. The benchmark remains below the significant cap provided by the all-time high charted two years ago at 4800 and traders are certainly debating whether the momentum that the market has been exhibiting is sufficient to fuel escape velocity. Momentum indicators have rolled over from overbought territory, although they are still showing characteristics of a bullish trend above their middle lines. The market remains in this logical zone to pause/digest in the near-term, aligned with seasonal norms and the tendency for stocks during election years, but until the intermediate path of the benchmark definitively shifts from its positive path, utilizing the weakness to add to equity positions for the strength that is normal through the end of winter and into spring appears appropriate. A recession would, quite obviously, be the significant risk that alters this expected course; we continue to scrutinize leading and coincident indicator to determine when this negative economic event may trigger. equityclock.com Treasury bonds have stopped rallying for now.

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