The Strength of the Market is: Strong
Last week made it 4-straight weeks of stock market losses. Even though investors experienced another weekly loss, the week ended with two positive days, Thursday and Friday. Today, the momentum from the end-of-week trading continued. Stocks finished much higher as investors regained optimism on news that talks on coronavirus relief aid, between Congress and the Treasury, are back on. Moving over to the economy, recent data has been positive. Housing, Manufacturing and Jobless Claims all reported better than expected numbers last week. This week, investors will be looking at the latest on Consumer Confidence, Investor Confidence and Corporate Profits, just to name a few.
Thankfully, the last 3 trading days (Thursday, Friday, Monday) have brought investors further away from the dreaded correction territory. Based on our market strength indicators and trends analysis, stocks are still Strong.