MONDAY-WEDNESDAY’S ACTION: Market Pauses After Obvious Levels Hit
THURSDAY & FRIDAY’S ACTION: Buyers Are In Control
Stocks rallied on Thursday and snapped the three day losing streak for the SPX after a flurry of economic data was released. Weekly jobless claims fell by 21k to 323k, which beat the Street’s estimate for 335k. Inflation remained a virtual non-event after the Producer Price Index slid by 0.2% in October, matching estimates. The Philly Fed index came in at 6.5, missing estimates for 15.5. Separately, the Senate Banking Panel approved Yellen as the next Fed Chief by a 14-8 vote. Stocks continued to rally on Friday- helping the DJIA and the SPX close above 16k & 1800, respectively.
MARKET OUTLOOK: SPX Tops 1800
The market is very strong and, in the short-term, is getting more and more extended by the day. The last time the SPX rallied for 7 straight weeks was in January. After a brief and shallow pullback, it continued to rally and hit new highs a few weeks later. Please note that our goal is to remain in sync with the broader trend of the market (up or down) and not get caught up with the minutiae of changing labels on the market status very often. As always, keep your losses small and never argue with the tape.