The SP500 ended up closing right at resistance today and if that breaks we should see an all time high for the SP500. The Dow made an all time high today and I am assuming there will be several more before the market finally takes a break for the summer. Also, I wanted to add to yesterday's post about the NASDAQ since it represents a sector that was previously leading the broader market. Basically, the broader market can easily go higher without technology or financials for that matter. There has been market rotation in the past few weeks and industrials are leading now. And to make my point just look at the multi-year chart for the NASDAQ and the SP500. The NASDAQ made its all time high back 2000 or 14 years ago and it has never been able to come close to testing it, in fact the NASDAQ is 20% below its all time high today. At the same time, the SP500 is 20% higher than its previous significant all time high during the financial crisis. Money rotates from sector to sector, simply as that.
Now with that said, the GDP numbers for Q1 are troubling. The stock market goes up when the economy grows so if GDP doesn't pick up asap, we will see a substantial correction once reality sinks in. For now, there's optimism and no point in fighting it. If anything, one should profit from it.
Short Term Trend = Bullish
Medium Term Trend = Bullish
Long Term Trend = Bullish