For someone awaiting the inevitable correction, living though the past 18 weeks has been like dying the death of 1000 cuts. The S&P 500 Index again gained more than 1% last week taking, a path easily summarized in just a few points.
The open on Monday eradicated Friday’s correction. While stocks dropped back on Tuesday, another end-of-the-day miracle left it unchanged. Wednesday, the market fell again, but this time did not recover at the last minute. Instead, on Thursday the market erased Wednesdays losses and more—basically accounting for this week’s rise. Friday padded that progress only slightly.
With the stock market clearly overvalued and persistently trading at low trading volume, we have to ask the question, what is driving this? Here’s an interesting perspective.
Technical analyst, Katie Stockton, appeared again this week on CNBC with a continued bullish intermediate-term forecast looking at S&P 500 Index 1370 and 1440 levels as next the stopping points. AAII investor sentiment moderated from last week’s extreme levels to something closer to just normal bullish
With another scene of the perpetual Greek default tragedy behind us, it should be clear sailing, right? I remain skeptical and expect the act to end badly.