The 50 day moving average (dma) of the major indexes is trending up, likely indicating the start of a new bull market cycle.
The Markets bottomed on June 16, and then their 50dma’s bottomed a little more than a month later. Since their July 50dma bottom, the Small Caps 50dma has recovered the most (up 4.7%), followed by the Mid Caps 50dma (up 3.43%), with the S&P 500 50dma bringing up the rear (up 2.84%).
As I’ve mentioned previously, I believe the uptrend could continue at least until the Midterm elections. Corporate profits have remained resilient and inflation is waning. For now, the greatest threat appears to be a European recession that drags down the global economy in early 2023.
Time will tell.
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