Charging Bull Statue is seen at the Financial District as snowfall in New York City, United States on December 16, 2020.

Tayfun Coskun | Anadolu Agency | Getty Images

Even the bulls are exhausted. 

The S&P 500 is up 14 of the last 16 days. It’s moved over 300 points (about 7%) since Oct. 13.

Improved revenues, strong earnings due to companies’ move to cut costs (which allows more profit to flow to the bottom line), seasonal strength and the Federal Reserve’s quantitative easing tailwind have all combined to create a market juggernaut. 

When will it end, and what should we look for as a sign of market exhaustion?

When will it stop? It depends on who you ask, but there are already warning signs.

Technicals are stretched to the limit. On a short-term basis, the S&P 500 is as overbought as it has been since just before the outbreak of Covid. “It takes a lot of energy to keep the markets advancing like this,” veteran market watcher Tom…

Read more…

Share.

Comments are closed.