Charting the Markets: Industrials Pushing for Impressive Milestone
Stocks ripped higher after some dovish comments from the Fed chair and never looked back.
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Recent new highs by the S&P 500 and Nasdaq 100 inspired other indices like the Russell 2K and Dow Industrials to join the party.
Save for the small-cap Russell, the industrials pushed up on Friday and closed at an all-time high, just shy of 46,000. Now the count is on for a push to 50,000 by year-end, which while an impressive number, would only be about 9% higher than current levels. With that index up 7.5% this year that would represent a very solid 16.5% gain, following up a 12.8% rise in 2024. Very impressive.
But let's turn our attention to the S&P weekly, which once again stayed in that uptrend channel that traces its beginnings to the fall of 2022. That was a time when inflation started to crack and the stock market reached lows not seen since COVID times.
The index has been cruising higher since, with higher highs and higher lows with a slight bump in the road this past April and May. As long as the price chart stays bullish and rises with the trend channel, the stock market is unquestionably bullish.
Money flow is still improving, MACD is quite bullish and the stochastics (momentum) remains strong. This is the last week of August and the pre-holiday, so we could see more erratic price moves happening.
