On Tuesday the popular averages finished mixed. Nevertheless, the Dow Jones Industrial Average and S&P 500 again attained all-time intraday and closing highs. Small business sentiment grew even more optimistic in November. Wholesale prices rose again last month. There was a widened federal budget deficit in November. Meanwhile the prices of crude oil and gold fell on Tuesday.
Above is my 3-month chart of the S&P 500 exchange traded fund (SPY). The SPY’s hop above its 50-day moving average on August 27 restored all of my outlook arrows to green followed by only a few days of short term caution. November began what is normally the market’s best performing grouping of six successive calendar months.
The recent parade of record SPY highs has been encouraging, including the intraday and closing records on Tuesday. There are still a lot of people who have remained on the sidelines with their hordes of cash. I don’t expect a market top until after indication of a great number of them suddenly rushing onboard due to FOMO (Fear Of Missing Out).
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