(C) Reuters. Will the Stock Market Breakout Continue?
While, the mania in meme stocks has continued this week, a more important development is the S&P 500 (SPY) flirting with a breakout to new highs above 4,238. Recent attempts to pierce this level have failed. It continued this week as yesterday and today featured gap ups to a couple of points below these highs which were rejected – resulting in some very mild declines. If the range-like conditions are still intact, then being more conservative at this juncture would certainly be rewarded given that we are at the upper-end of the range. However, there are some positive developments under the surface that do increase the odds that this breakout attempt will succeed. In this week’s commentary, I will discuss these improvements, note some reasons to be skeptical of a breakout, explain what I think is the appropriate positioning and provide an updated look at inflation. Read on below to find out more….(Please enjoy this updated version of my weekly commentary from the POWR Growth newsletter).
Last week, I wrote:
“The S&P 500 has essentially been locked in a range between 4,200 and 4,050 since early April.
Will the Stock Market Breakout Continue?
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