Yesterday, the S&P 500 closed above the downtrend resistance line that has connected all of its previous highs going back to January of 2022. It’s now above its 200-day moving average and Thursday’s close amounts to a technical knockdown of 2023’s stock market bears.
I was eyeing this trendline level very closely and talked about it on Sunday.
I know now people will still doubt this move and look for a close above the December and November highs to be convinced.
As you know, I was very bearish on the stock market last year, but turned bullish on the market earlier this month.
This doesn’t mean we are going back to the way things were before 2022. I talked about how long i think this bull cycle will last in an update I did on January 17 you can find here.
In reality, gold, silver, and foreign markets all over the world already turned up in November and December.
The US stock market is actually lagging most markets around the world.
Emerging markets and Europe led the way for this break above trendline close for the S&P 500.
You can see how EEM’s relative strength EEM/SPY ratio has just going up since November.
EEM did the type of breakout the S&P 500 did yesterday three weeks ago.
Japan also followed suit the other week too.
We are starting a global bull market in an uncertain time, but that is how they all start.
The bear is going into hibernation now.
-Mike
