It was a bullish week for US equity indexes, with net
weekly gains ranging from +2.8% (Trans), +2.3% (Nasdaq comp'), +2.0% (SPX), +1.8% (Dow), to +1.6% (NYSE comp').
Lets take our regular look at five of the main US indexes
sp'500
The SPX climbed for the 13th week of 15, breaking a new historic high, settling +64pts (2.0%) to 3329. Weekly RSI 79s, the highest since Jan'2018. Price momentum ticked upward, and is now on the very high side. For now, there is absolutely zero sign of a ceiling/turn.
Nasdaq comp'
The 14th weekly gain of 16, breaking a new historic high of 9393, settling +210pts (2.3%) at 9388. RSI 80s, the highest since Jan'2018.
Dow
The mighty Dow climbed for the 11th week of 15, breaking a new historic high of 29373, settling +524pts (1.8%) at 29348. RSI 75s, the highest since Jan'2018.
NYSE comp'
The master index climbed for the 13th week of 15, settling +225pts (1.6%), at a new historic high of 14183.
Trans
The old leader - Transports, the fifth week higher of six, settling +304pts (2.8%) at 11278. I would keep in mind the Sept'2018 historic high of 11623, and that is clearly viable before end month.
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Summary
All five equity indexes saw significant net weekly gains.
The Transports lead the way higher, whilst the NYSE comp' lagged.
The SPX, Nasdaq comp', Dow, and NYSE comp', broke new historic highs.
Whilst price momentum is at highs not seen since Jan'2018, there is zero sign of a ceiling/turn in any of the main indexes.
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Looking ahead
It will be a short, but busy four day week...
Earnings:
M - LOGI
T - HAL, UBS, NFLX, IBM, UAL, COF, AMTD, IBKR,
W - JNJ, ABT, ALLY, BKR, KMI TXN, TER, STLD
T - PG, CMCSA, AAL, LUV, JBLU, UNP, INTC, ISRG, SWKS, ETFC
F - AXP, NEP, NEE, BUD
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Econ-data
M - CLOSED
T -
W - Chicago Fed' Nat' act', FHFA HPI, existing home sales
T - Weekly jobs, leading indi', EIA Pet' & NG, Fed Bal' sheet (4.30pm)
F - PMI comp' flash
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| Cruising above the London metropolis |
Final note
The US equity market is unquestionably super strong, reflected in a VIX that remains broadly subdued in the low/sub-teens. The ongoing Fed QE is helping juice most asset classes upward. After all these years, I won't be going over the 'transmission mechanism' for that.
A number out there (such as
@NorthmanTrader ), also recognise the string of downside equity gaps. There is ZERO reason why most (if not all) of those won't be filled, just as happened in early 2018.
I'd acknowledge the market could continue to melt upward into the spring, but at some point, its going to break, and we'll likely see a fierce (if brief) washout to 3000/2900s. That will arguably make for an ideal buying/adding zone, as a broad push to 3900/4000 appears very much on the menu.
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| Another sunset closer to spring |
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Enjoy the long weekend
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*the next post on this page will likely appear 5pm EST on Tuesday.
