The accompanying annotated 3-month daily chart of the S&P 500 illustrates how strong the bulls are right now. After all is said and done- the market is up less than 1% for the year, less than 1% below its all time high (hit two weeks ago on March 7th) and is trading in virtually the same spot it was three months ago.
In the past 3 months, the market has digested a slew of negative headlines:
- Several geopolitical hot-spots flared up across the globe
- The Map of the world has literally changed (Ukraine shrunk, Russia grew)
- Weather conditions adversely affected much of the global economy (Polar Vortex, drought in Brazil, etc)
- China’s stock market is back to the lowest level since 2009
- Copper prices crashed to the lowest level in 4 years (taking out major support along the way)
- A slew of commodities surged from deeply oversold levels (Coffee, Nat Gas, Sugar, Corn, Oats, Wheat, etc).
If I told you in December that all this would happen and asked where do you think the S&P 500 would be most people would probably have said lower. As a testament to how strong the bulls are right now – the market barely budged and is actually higher! Remember, when a market doesn’t fall on bearish news- it’s actually bullish.