And just like that, the S&P 500 Index printed multi-year highs again this morning, this time at 1518. Granted, they are only marginal new highs at this point. But the fact remains that nailing down the precise top of a market trending higher is uniquely difficult for even the best of contrarians. We are also not yet looking at an up 2-3% day, as the Dow and S&P are steadily higher less than 0.50% each, while the Nasdaq is leading up over 0.85%. Indeed, the bears just have not yet shown the type of conviction necessary to cement a lasting reversal. That can change quickly, but Monday’s bloodbath has now been fully erased.
Among the best movers are earnings gaps, such as with LNKD. I continue to be net long, though am keeping an open mind that other a secondary wave of stocks and sectors likely needs to emerge or follow-through with recent strength in order to propel another sustained leg higher. That said, I still see plenty of traders eager to fade any strength. That friction has likely cause the net sideways action over the past week or two.
However, as this morning illustrates, the edge goes to the bulls until proven otherwise.
