Dow chart up 3.05%, Nasdaq chart up 3.8%, S&P 500 chart up 2.7%. For market technicians another highlight is that all three indexes are trading above their 50 day moving averages. The short sellers must be asking how is this possible considering all of the headwinds here and abroad? I don’t even think the bulls expected this type of market rally considering the economy and the recent geopolitical conditions. This indeed must be one of the most teflon markets in memory as investors keep riding this seemingly unstoppable bull.
Next week there will be no shortage of economic news with personal income and spending released on Monday, followed by consumer confidence on Tuesday and all eyes will be on the non-farm payroll report on Friday. In addition, the first quarter is ending this upcoming week and the markets could be affected by the end of quarter window dressing. Window dressing is a strategy used by some mutual funds and portfolio managers to improve the appearance of their funds performance. This occurs when fund managers sell stocks with large losses and purchase momentum stocks near the end of the quarter.
Needless to say we should be in for a very interesting and potentially volatile week ahead.
Have a great weekend 🙂