Join Larry McMillan as he discusses the current state of the stock market on December 23, 2024.
The wheels came off the wagon after the Fed meeting on Wednesday. It appears that the Fed's decision to drop rates by 25 basis points, plus their announcement that they might not cut much next year, triggered the selling. But it was probably more of a "sell the news" kind of thing. In the old adage, it's the Fed taking away the punchbowl.
The broad stock market, as measured by indices such as $SPX, continues to probe new all-time highs. This week, there was a positive catalyst in the form of the CPI number, which was benign enough to raise hopes for a further rate cut by the Fed. There is support at 6010, with much stronger support at 5870. As long as $SPX remains above 5870, we will maintain a "core" bullish position. That number may have to be raised eventually, but that's where the strong support is now.
Join Larry McMillan as he discusses the current state of the stock market on December 9, 2024.
We have addressed this subject a few times in the past, but with the equity-only put-call ratios plunging to multi-year lows, it seems appropriate to take a fresh look and review what we know from the past. As noted in the market commentary above, the standard ratio is down to levels last seen in November 2021. The weighted ratio is at a new low for this year, which is about as low as it ever gets.
The broad market continues to be strong, as most of the major indices are trading at new all-time highs now. This includes $SPX, $NDX, $DJX (the Dow), but not $RUT (the Russell 2000). As $SPX has pushed forward, many of our indicators have moved into overbought territory. However, few have confirmed sell signals.
Join Larry McMillan as he discusses the current state of the stock market on December 2, 2024.
The stock market has made new all-time highs this week, both on an intraday and a closing basis. $SPX has done so, and other major indices that have followed include the Dow Jones 30 Industrials ($DJX) and the Russell 2000 ($RUT). The NASDAQ-100 ($NDX) has not quite gotten there this week, after registering new all-time highs earlier in November.
Join Larry McMillan as he discusses the current state of the stock market on November 25, 2024.
