There was a lot of red in the market last week, which saw the S&P 500 down each session and five consecutive sessions going back to September 7th.
The good news is the “carnage” has only been 1.4%, which is impressive considering the average decline for five-day drawdowns since October 2016 has been 4.6%.
The key continues to be the action in those mega cap growth names that have skewed a lot of damage.
There are no weighting changes today in our Hotline Model Portfolio.
The market looks to open much higher and I suspect the crowds are really back from summer vacations ready to rock and roll.
The S&P 500 has seen its 50-day moving average hold time after time during the current leg higher, but I’ll be watching the upside.
The first test is 4,540 while a close above 4,600 is the big breakout.
Excited about the strong start to trading. My Payne’s Perspective is ready – contact your rep or research desk.