The NASDAQ bounced sharply from its prior support level around 14200 last week. The dip buying crowd successfully plugged the hole. Now it looks like the NASDAQ will march on to attempt 16000 in the next 4-6 weeks. Underneath the raging indices, there has been a rolling correction since early 2021.
In our last blog, we projected that the bank stocks would fall in the direction of cycle regardless of their earnings report. They did fall after earnings report. BAC is the weakest and MS is the strongest in the group of BAC, C, JPM, GS and MS. The banks are making money, but the market didn’t care.
Last week was a short trading week due to the 4th of July holiday. Even though the three indices closed at a fresh all time high weekly close, but the intra-week trading had a drama on Thursday, which some concluded as a technical correction as the 10-year treasury yield went dramatically lower against the expectations from the majority of the market participants.
Last Friday the DOW closed precisely above the high that occurred on May 7th. While the S&P 500 and NASDAQ were in breakout position, the DOW was indecisive until now. This means that all major indices are now in sync and going up together. This bull market is truly powerful and amazing.
