The S&P has closed at a record high six straight days which is its longest run of the millennium (since 1997)! Stocks rallied sharply last week as the bulls remain in clear control of this market. At this point, the market is now extended (in the short term) and remains very strong. It is important to keep in mind that the fourth quarter tends to be a seasonally strong period for the market and that means we can easily head much higher over the next few months. In the short term, I would be remiss not to note that the market is extended to the upside and due to pullback. Underneath the surface, the action remains picture perfect as the great mini-rotation remains alive and well. Until we see any formidable selling, the bulls deserve the benefit of the doubt. Remember, in strong bull markets (present market included), weakness should be bought, not sold.
Thur & Fri Action:
Stocks rallied on Thursday helping the S&P 500 to enjoy its first 8-day winning streak since 2013. The big news on Thursday came from D.C., the House passed a $4.1 trillion budget which is the first major step toward tax reform. Last week, the GOP said they want to lower corporate taxes to 20% from 35%. If that bill passes that will be a big boost the U.S. (and global) economy. Stocks were quiet on Friday as the market paused to digest a very strong rally. Separately, the Labor Department said U.S. employers shed 33k jobs in September as the country suffered from two major hurricanes.
Market Outlook: Bulls Are Back In Control
The bulls are back in control and the market remains very strong. As always, keep your losses small and never argue with the tape. Get Our Free e-Book: Learn How To Buy Leading Stocks…EARLY. Get It Here…