Market Summary
The stock market remains bullish, continuing the trend we've seen over the past year. As noted in last month’s newsletter, major indexes have been advancing with healthy pullbacks followed by strong rebounds, and nothing has changed in that regard.
S&P 500 Overview: The S&P 500, which had been sitting at a previous high (resistance) last month, saw a brief pullback before advancing above that resistance. This is a positive signal as the index is now at all-time highs, trading above its 50, 100, and 200-day moving averages—all of which are trending upward. From a price perspective, this continues to confirm the market’s bullish momentum.
Equal-Weighted S&P 500: What’s even more encouraging is the strength of the equal-weighted S&P 500 index. Unlike the cap-weighted S&P 500, this index reflects the performance of individual stocks more equally and shows an even stronger pattern, confirming broad market participation. This reinforces the idea of healthy market breadth, with most stocks trending higher.
Nasdaq 100: The Nasdaq 100 continues to lag the S&P 500, but the chart still shows a bullish pattern. The index has managed to break above the downtrend line that defined its recent pullback, though it has yet to reach its previous highs. Despite this lag, it remains above its key moving averages and continues to signal strength.
Current Portfolio Allocation
Our client accounts remain nearly fully invested, reflecting the ongoing bullish market conditions. Since the market continues to show strength, we’ve maintained a robust equity allocation. Positions have been added as the market has confirmed its upward trend, with most accounts strategically allocated to take advantage of this strength.
As always, we are mindful of managing risk, but the market's technical evidence remains supportive of a bullish stance. Our focus remains on sectors and stocks demonstrating the strongest performance while staying vigilant for any potential shifts in market dynamics.
CAN WE HELP YOU?
HERE’S AN EASY WAY TO FIND OUT
We want clients who are a good mutual fit. To find out, we offer a no-pressure complimentary consultation. If we can help you and you want to work with us, that’s great. But if you don’t, we will give you free asset allocation direction on your retirement accounts, at no charge and with no strings attached.
If you are interested, send us an email to set up your complimentary zoom meeting.