Learnings and conclusions from this week’s charts:
1. The S&P 500 $.SPX(.SPX)$ closed up +2.7% in January.
2. The equal-weighted index did +3.4% (sign of things to come?).
3. Companies are sounding more optimistic in earnings calls.
4. Investor confidence is down, economic confidence is up.
5. The scene is set for rotation (especially small vs large).
Overall, despite some volatility, January marked a solid start to the year, and the maintenance of momentum is a good sign (historically speaking — as the charts show).
The intriguing uptick in economic optimism actually provides more of a prompt to ponder rotation and ranging rather than more of the same of the past few years.
Change is in the air…
$SPDR S&P 500 ETF Trust(SPY)$ $E-mini S&P 500 - main 2503(ESmain)$ $Invesco QQQ(QQQ)$ $iShares Russell 2000 ETF(IWM)$ $Cboe Volatility Index(VIX)$
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