S&P 500 Out of Funk
After spending all of March and a majority of this month in a funk, S&P 500 (and the rest of the market) responded favorably to France’s election results today.
Today’s 1.08% S&P 500 (NYSEARCA:SPY) gain was the first advance exceeding 1% since March 1. The surge higher was sufficient to propel S&P 500 back above its 50-day moving average. Stochastic, relative strength and MACD indicators are also all positive. April could still manage to live up to its historical reputation.
Today’s gains and the improving technical outlook could mark the beginning of the typical rally seen in years when our January Trifecta was positive. If this is the case then a few more days of modest gains (black arrow in chart below) could be followed by a swift move back toward all-time highs (green arrow).