Trend for Position Traders
9/24/21… UPDATE: The S&P 500 index rose 0.51% last week as investors bought the dip leading to a selloff in the bond market. The index remains locked in a historic uptrend.
It was another volatile week on Wall Street as the S&P 500 index managed to notch a weekly gain despite lingering concerns over China’s property sector and the ongoing economic impact of the global pandemic. We have explained that we do not expect much of an impact in the U.S. financial markets from the current Evergrade debt crisis that is roiling China.
So too, the Federal Reserve’s closely watched September policy meeting delivered few surprises last week. Fed Chair Jerome Powell suggested the central bank’s tapering plans would arrive as early as November but warned that inflation could remain elevated for several more years.
The index did close the week back above its 50 DMA line, which is an area that has offered support all year long. We will be watching this support area very closely next week.
Bond prices slipped as investors piled back into stocks in the latter half of last week. The yield on the benchmark 10-Year U.S. Treasury note rose to 1.46% on Friday.
The S&P 500 index has scored more than 50 record closes so far in 2021 and the index is now up 18.6% on the year.
The major uptrends in the S&P 500 index remain intact as we head into next week.
We continue to watch key 50 DMA (currently around 4439) and 120 DMA support (currently around 4307) on the S&P 500 index. A breach below the 120 DMA level, which held in the most recent pullback, could signal further selling pressure ahead in the near term.
With enormous amounts of liquidity (leverage) sloshing around the financial markets, it is not surprising to see many bubbles being blown. Of course, we have been saying as much for several weeks since alerting our members to historic market breadth levels. However, moral hazard is now fully in play and speculators are likely to buy dips as long as monetary and fiscal policies remain aggressively accommodative.
When another change in the trend of the S&P 500 index is detected, we will alert our members!
Our Market Trakker alert system will keep you advised of the current broad U.S. stock market trend. When we detect a change in the major Long-Term trend, our members will be notified by email (and inside The Robinson Report) along with details on how we are responding.
Long-Term Trend for Long-Term Investors
9/24/21… The S&P 500 Long-Term trend remains in a confirmed Long-term uptrend based upon our trading system. When our Market Trakker system detects a change in the underlying Long-Term Trend in the S&P 500, this page will be updated and all current members will be alerted by email.
- Market Trakker Charts – Updated Every Weekend
S&P 500 Index – Daily Chart
S&P 500 Index – Long-Term Trend (Monthly) Chart
(Long-Term Uptrend – Detected 8/14/20)
S&P 500 Index ETF (SPY) – Position Trend (Weekly) Chart
(Position Uptrend – Detected 5/31/20)
Percent of S&P 500 Stocks Above 200 DMA
(Measures market participation)
U.S. New Highs-New Lows
(Gauges internal trend momentum)
NYSE Bullish Percentage Index
(Measures market participation)
S&P 500 Index – P/E Ratio
(Current P/E valuation of S&P 500)
Min: 5.31 (Dec 1917)
Max: 123.73 (May 2009)
- Market Trakker Resources
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