Last week the S&P 500 set yet another all-time high… before dropping… then recovering. What does it all mean? In short, it looks like the trend is unbroken, and the bulls are still in charge.
Despite all the chaos in the world – the very real inflation we’re all experiencing – and the very real catastrophe in Afghanistan – investors still appear to have no better place to put their money than the stock market. And the prices keep climbing.
Last week markets peaked on Monday before going on a back-slide. It took until Wednesday for the SPX to find footing. From there, the prices recovered. And by Friday, prices were back in the middle of the trading range.
Underneath all this action it looks like a minor price retracement wave was completed as the pull-back tested the mid-July price capitulation range. From there, prices began to climb.
Absent some other black swan style event that throws this market off its pattern, it appears, at least in the short-term, that yet another extension higher is in play – likely towards 4500 – and it could be as soon as this week.
This market is on a pathway that is hard to justify fundamentally. The technicals are suggesting a 4850-ish finish this year for the SPX. That’s another 9% from here (and into the ‘extreme’ upside target range set at the beginning of the year).
IMPORTANT DISCLOSURE INFORMATION
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by BigFoot), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from BigFoot. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. BigFoot is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the BigFoot’s current written disclosure statement discussing our advisory services and fees is available for review upon request.