The American Consumer loves to shop and spend, maybe not as much lately and 8 MILLION unemployed, but those with money and jobs are doing what they can and our economy has pulled itself out from the abyss.
A STRONG market advance is very possible from here with many continuing to doubt it possible.
Nothing trades in straight line and out there are things we cannot know. ENOUGH has not been done and small business needs help and access to loans.
BY Bear MKT standards an SPX dividend yield at 2% is not even close to any previous Secular Bear bottom....DO WE make our way to a day when the SPX yields 6%? should that happen the SPX would be valued at 400....that sounds rediculous right?
But hasn't PRINTED money, FED back stopping been holding things together? Is there a limit? Does this come with a cost attached? inflation?
I don't see any technical issues yet....but this is anything but typical by any measure.
**closing notes
Today's rally was on a 14% drop in NYSE Volume. (sorry to bring that up again) The % of stocks above their 10-DMA continued its downtrend and suggests their isnt a lot of conviction at these prices. PNRA at $80 anyone?
D
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