Stocks continue their charge higher. We saw new all-time highs in the Nasdaq, S&P, and Dow, while the Russell is still a bit under five percent from its 3/15 high. This recent run higher has been impressive to say the least. The S&P put in its most recent low on 3/25.  Since then, the market has gained nearly 9% off that low. The rally included a twelve-session run of higher lows on the daily chart. That streak was broken on Tuesday, but we also saw a new ATH close that afternoon.  For the same time period, the Dow has rallied 6.8% from its low, and the Nasdaq is up 11.5%. 

Data continues to be encouraging. Retails sales and jobless claims yesterday were impressive. Consumer sentiment missed the lofty expectation of 89.0 this morning, but the 86.5 reading is still an improvement from the 84.9 reading we saw in March. Housing data remains strong and should continue to be as weather improves. The Fed has very little concern about the early warning signs of inflation and will continue to be accommodative. Stimulus money is seemingly everywhere, and Americans are getting vaccinated at high rates. While corona virus cases haven’t declined to the levels many would have hoped for just yet, they’re likely to do so. Consumers also saved 1.7 trillion dollars not traveling, going to restaurants, etc.  As they continue to feel safer, you can bet they’ll be looking to put some of that to use.  While there are also a great deal of reasons to be concerned about these levels we are seeing (and continue to build upon), the market seems to have little concern for them in the short-term.  

E-mini S&P 500 Daily Chart
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Bill Dixon

Senior Market Strategist

Bill began his career working with a firm of technical commodity traders specializing in the treasury and metal markets. In 2006 he moved over to Lind-Waldock as a broker. Bill joined RJO Futures in 2011.

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