It is pretty wild, but the stock market just doesn't want to go down. There have been plenty of "reasons" for stocks to roll over - rising interest rates, layoffs (though overall employment is strong), debt ceiling worries, bank failures, but here we are at a potential breakout.
Market has got alligator blood...
Stocks just keep hanging around, hanging around...to paraphrase a great quote from the movie rounders.
Looking at the daily chart above you can see the S&P is testing the February high, which would leave a clear path the the highs of last summer.
The market broke out of its one year down trend early this year and confirmed that with the test of the yellow trendline back in mid-March.
Looking back, that was a pretty damn clean and clear signal to get long that I completely saw and ignored for no specific reason.
Either way, with all the talks of the coming recession and everything else I mentioned to start this post - the stock market remains resilient.
At the end of the day, its not like all the liquidity dried up, it is just not as loose as it once was. That doesn't mean it became tight though. Capital is needed to drive markets.
Posted Using LeoFinance Alpha