The bears are silent now. They seem rather stunned at the turn of events. The S&P, Dow and NASDAQ all have big gains again today.
The S&P made another new all-time high reaching 2155.40 intraday. The Dow intraday reached 18,371.95 for a new all-time high. Both indexes closed off their highs but well within range of the all-time highs.
The NASDAQ has languished for most of 2016 so even with today’s move of 34.18 points and a close above 5022.82, the index is still below its high from 2015 of 5,231.94.
SPX Rally up 7.75%
Since June 27 the rally is up 7.75% for a gain of 155 points (approximately). This is the best rally since 2011 and a lot of bulls have declared that 2100 is now broken through and the market is set to reach 2200 shortly.
SPX Rally Since June 27 2016 is up 7.75%
Oil Prices Up
Part of the rally today, which was larger than Monday’s rally, was caused by the rise in oil prices which rallied the energy sector. By the close energy was up 4.49% (West Texas Intermediate WTI) to $46.77 on the futures. This assisted today’s rally as did a slight drop in the US dollar.
Overbought Signals
More overbought signals are now appearing which is to be expected. I would expect the market will take a break before pushing higher. Whether 2200 is in the works for this or next week is anyone’s guess. Right now the market has reached the price target I felt it would reach by the end of this week, and we are only into Tuesday.
July Remains Best Of The Worst 6 Months
If the rally holds and the SPX moves higher, July will continue to hold its historic distinction of being the text of the worst 6 months of the year.
More Sectors Still Have Room To Run
There are still a number of sectors which have room to move higher. I will be outlining some additional trade ideas for tomorrow, later this evening, but suffice to say, this has been a superb rally and profits are continuing to pour in.
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