S&P 500 UP 60% since March low......

 US stock market is in " neverland " where traditional technical definitions are not holding up well @ all.

Most well known technicians like Carter Worth has been wrong in most predictions about S&P 500 and its direction....

Most traders are also baffled by resiliency of this market....

Any trader who thought they knew better than market, are wiped out in no time.

This is a " hyper momentum wave " which needs nobody's approval.

This is not a text book or economics 101 situation.....

Fed is hell bent to steer this COVID-19 slump into a positive conclusion for the economy, an unprecedented move which anybody has ever seen, Fed is supporting this market with everything they can muster, no matter what it takes.....

Once you understand Fed role as being in the driver seat with impunity to print print and more printing of dollars as needed or when not needed ....market has to bow down to Fed's will and direction.

RSI is already defying logic as listed below :

S&P 500         79.26

TAN                78.27

Nasdaq           74.21

DOW              74.14

SOX               63.54 

IWM              62.40

GLD              54.58

XLE              46.22

As you can clearly see that most sector / index are above 60 which is considered overbought, S&P 500 almost hitting 80........

Since March 23rd low, it is over 5 months and 1 week, we have not pulled back and have moved UP in a straight line of 60%++++S&P 500 was @ 2191.86 on March 23rd, 2020, closed on Friday @ 3508.01 a gain of 1316.15 points or straight 60%......

It is better to go with the flow with a well diversified portfolio, rotation is the name of the game.

Market is also anticipating " change in rose garden "

Leadership is staying in strong stocks on any excuse, 10% to 26% gains are becoming routine on a good day.

SO ..in conclusion, Fed is backing markets big time with unlimited funds, Election is giving boost, rotation keeps happening......

Technicals are out of the window for now...

VIX @ 22.96 ...still room to go down to 52 week low of 11.42...85.47 was the high....

Sit back and enjoy your morning coffee, trend is your friend, the best I have ever seen!!!!

BLOG does NOT give buy or sell.

Saleem

Posted in: Mixed