The following is an excerpt from Ben Levisohn | February 27, 2017 | Barrons.com |
It’s a streaky time for the US stock market. The Dow Jones Industrial Average, for instance, has been on an 11-day streak of new record highs, the longest such streak since 1987. The S&P 500, meanwhile, has gone more than 90 days without a drop of 1% or more, as volatility has remained stuck at ultra-low levels. If you’re a contrarian, those streaks would seem to make it a perfect time to sell, sell, sell. There’s only one problem: The technical evidence is pointing to a higher market.
Sure, the Dow’s streak of record closes is “technically meaningless,” says Clearview Trading Advisors’ Jeffrey Weiss, but other evidence suggests that stocks have more gains ahead. He explains why:
The Dow Jones Industrial Average has now posted gains for eleven consecutive sessions. Beyond this newsworthy but technically meaningless statistic, however, our focus remains on the far more important intermediate-term and longer-term market trends, which we still consider favorable overall at this juncture despite the distance this bull has charged. As always, we’ll be guided not by sentiment readings or how far the market has traveled in a particular direction, but rather on structural considerations…
For more visit: Barrons.com