With 2Q23 Earnings Nearly Over, Large-Caps Faring Much Better Versus Mid- To Small-Caps

With 2Q23 earnings season nearly over, S&P 500 companies are set to earn more than what was expected at the start of the quarter. This, however, is not so as relates to S&P 400 and 600 companies. Mid- and small-caps … Continued

Amidst Elevated Investor Optimism And Expensive Multiples, S&P 500, Nasdaq 100, and Russell 2000 Denied At Crucial Resistance

posted in: Equities, Technicals | 0

After a rip-roaring rally since last October’s bottom, major US indices stopped at what could turn out to be make-or-break resistance. Sentiment is not frothy but elevated enough to cause unwinding, and multiples have only expanded since the end of … Continued

After 9 Weeks Of Rally, Signs Of Fatigue Last Week On Russell 2000/IWM

US stocks are on fire.  The Russell 2000/IWM was essentially unchanged last week, with the index down 0.03 percent and the ETF up 0.06 percent.  This followed nine weeks of persistent rally, during which they jumped 34 percent.  Conditions are … Continued

SPY Rallies To Just Under 260 – Sideways At Best, Downward At Worst Likely Path N/T

Since the intraday low on Boxing Day, SPY is up nearly 11 percent.  Too far, too fast?  Possibly, as the ETF is just a hair breadth away from support-turned-resistance at 260, which it lost mid-December. The Fed has a dual … Continued

Odds Growing Sharp Reflex Rally In S&P 500 Sooner Than Later

From early October, the S&P 500 is down 18 percent.  Important support lies at 2400, or just underneath.  Several indicators are at/near panic levels.  Risk-reward odds favor unwinding of these conditions sooner than later. There is blood on the Street.  … Continued

Will Small-Caps Pull Large-Caps Higher Or Will High-Yield Drag Small-Caps Lower?

posted in: Credit, Economy, Equities, Technicals | 0

US small-caps are outperforming.  Price action is great.  But large-caps are not on the same page.  And high-yield corporate bonds have diverged with small-caps for a while now. In early 2016 when US stocks reached a major low, several other … Continued

Small-Caps Act Strong – On Verge of Major Breakout Or Triple Top?

There are some interesting dynamics in play in the small-cap sector – encompassing both fundamentals and technicals. Post-tax cuts of last December, earnings estimates were sharply revised higher.  The Tax Cuts and Jobs Act of 2017 was signed into law … Continued

S&P 500 Struggle To Lift Off Of 200DMA – Short Put For Premium/To Position For Earnings Bounce

Presently, the state of US trade deficit and how the Trump administration is attempting to address it is front and center. In February, the deficit came in at $57.6 billion, with the 12-month total of $589.6 billion, which was the … Continued