And here we are again. For the third time, we’ve made the trek up to 3000-land. The bulls have a sail full of wind at their backs: specifically, QE4, a steady drumbeat of good earnings, and an era of good feelings with US/China (which was animosity just a few weeks ago).
The NQ, likewise, is revisiting its own land of lifetime highs. In both the ES and NQ, each visit to this lofty plain has been with just a tiny bit more weakness. In favor of the bulls, however, the dips beneath have been a series of higher lows. In other words, the bulls have been losing a tiny amount of energy on their upward pushes, but the bears have absolutely nothing to show for their efforts on the downward pushes.
An extremely important element in the backdrop remains banks and brokerages. The past two weeks have been very good for this sector, but the bigger picture is still a series of lower highs, at least until such time as we bust through that prior “lower high”.
And, thus, the VIX has once more had the life squeezed out of it, and we once again are back in the all-too-familiar land of the low teens. Pretty sad, ain’t it?
With the election about a year away, I’ll say again what I’ve said the past year, which is that if you could know the S&P of early November 2020, you could predict the outcome with certainty. Our present government is well aware of this, and they’ll keep slinging whatever needs to be slung to stay in power.
