The market’s relentless advance finally took a breather as we are down about 1.5% from Friday’s high in the S&P 500 (SPY). Overall, the stock market is up about 7.5% since mid-October. While, some sort of profit-taking is healthy and to be expected, I continue to remain bullish on the market going forward. In fact, I’m noticing a steady drumbeat of negative economic news which is providing even more fuel for the stock market’s ascent. In today’s commentary, I want to discuss this strange dynamic, give some quick thoughts on energy and provide an update to earnings season as it comes to a close. Read on below to find out more….(Please enjoy this updated version of my weekly commentary published November 11, 2021 from the POWR Stocks Under $10 newsletter).
Over the last week, the S&P 500 is down by about 0.25%, while the Russell 2000 is up 0.5%. As covered above, this seems like a healthy pause within the larger advance.
There is no evidence of distribution, institutional selling, or weakness in volume that would indicate that this is the beginning of a more substantive correction.