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The small-cap index, Russell 2000 (IWM) is up 18% for the year and kissing its 200-day moving average. The market continues to react mostly favorably to earnings. Market breadth hasn’t been so good in years. We see strength in so many different sectors and countries – solar, biotech, enterprise software, semiconductors, gold, palladium, Brazil. Even Chinese names have started to break out and hold their gains. It’s hard not to be bullish in this market environment.
I will be watching closely how the SPY will react near $280, which has been a major area of resistance for a long time. If it breaks and holds above it, there are no significant stops before new all-time highs.
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