The S&P500 ($SPX) hasn’t made much progress since mid-April. Instead, the market has essentially consolidated the gains from the early March low. And as it has for the past 3 or 4 weeks, price sits ~2% above the 50-day and ~11% above the 200 day.
2021-06-06-SPX Trendline Analysis - Daily
The ADX remains below 20, but the directional indicators remain bullish. And we picked up another 2 distribution days.
2021-06-06-SPX Elliott Wave Analysis - Daily - Primary 1
Elliott Wave continues to show an uptrend
The May jobs report was a bit below expectations, but that's probably for the best. Any higher and we would have seen more hand-wringing about the Fed. Much lower and we would have had more hand-wringing about runaway valuations. Instead, we got something in the middle, and that means stay the current course.
So-called value and cyclical stocks have typically outperformed high-growth names when earnings accelerate out of a recession. And we're seeing this play out in the relative performance of the DJIA and NASD.
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