Hi everyone, sorry on the late post. Although I don’t like valuations at this price, I think prices will continue higher due to momentum. We will see if prices can hold all time highs.
SPY daily chart below. Notice the large gap up and fade we had on Monday. Although this is usually bearish, the index continued to move sideways / up for the remainder of the week. That to me is bullish.
The Energy sector (XLE) did very well this week, up 17% compared to the SPY’s 2.3% gain.
Daily chart of XLE below:
Financials (XLF) were up 8%, also drastically outperforming the SPY this week.
Daily chart of XLF below. The chart looks somewhat similar to XLE, but the selling isn’t quite as bad.
Have a great Monday, and see you next week like always!