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The large-cap stock indexes, SPY and QQQ keep making new all-time highs. The small-caps are laughing behind but IWM is certainly looking for constructive above its rising 20 and 50-day moving average.
With the exception of China and biotech, all sectors are looking strong and breaking higher – consumer discretionary, financials, transportation, tech, gold, etc. Strong market breadth coupled with rising long-term inflation expectations and a Fed willing to cut short-term interest rates is a bullish combination.
The new earnings season kicks off tomorrow. Financials are typically first to report. Many of them have already started to break higher in expectations of strong results.
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