A disappointing retail sales figure seemingly helped both the Dow and S&P 500 hit new all-time highs. However, the party wouldn’t last very long as sellers were able to push back the market for much of the trading session. Closing lower again were the NASDAQ and Small Cap stocks as sellers continue to operation efficiently in those indexes. Volume appears to be lower on the session, but that isn’t a big surprise as on the whole today was a pretty boring day. Yes, the Dow and S&P 500 are at all-time highs and this is a good thing. However, with the NASDAQ and Russell 2000 lagging badly certainly feels like a party without any life. We’ll stick with our proven process and take what we get from this market.
A Business Insider article had the following headline:
Quite the state of affairs when all we have to know about the market is whether or not central banks across the globe will fill the economy with free money. For every action there is a reaction. Much like the recoil of a gun what is the reaction to this massive monetary explosion of free money? Time will tell and for the time being it is robust equity markets serving only those who own. Inflation continues to be “tame,” but it is tame with hedonics. If stocks continue to be a beneficiary we’ll continue to make money from this market and even if stocks tire out we have the process to avoid losses when we do turn.
IBD did not flip to “Market-in-Uptrend” last night after the huge move across the board. They are certainly sticking to their guns despite the S&P 500 and Dow Jones Industrials at all-time highs. If one were only to refer to the Russell or NASDAQ it would be easy to see these two are in correction mode. However, the same cannot be said for the first two indexes. It’ll be interesting to see how we push forward, but it remains the same storyline: NASDAQ and Russell 2000 continue to lag behind the Large Cap indexes of the Dow and S&P 500.
We’ll see what we get tomorrow and with a little like perhaps a bit more excitement.
