Over the past week, the S&P 500 (SPY) mostly moved sideways before breaking out today on strong volume and price action. It’s too soon to know whether this is the start of a new uptrend or simply just another bounce. However, we are entering a seasonally bullish time of the year and early indications are that Q3 earnings season is going to be strong as well which could be another tailwind for stocks. In this week’s commentary, I will cover this topic and our market outlook. Read on below to find out more….(Please enjoy this updated version of my weekly commentary published October 15, 2021 from the POWR Stocks Under $10 newsletter).
Over the last week, the S&P 500 is up by 0.8% with the Russell 2000 up 1.3%. It’s certainly been more of a rotation-type environment rather than a trending market where all boats are lifted higher.
Ultimately, these types of advances are more sustainable and can last longer. The S&P 500 is up by 20% this year, yet it’s never gotten too extremely overbought other than in mid-February, where it was punished with a steep decline.