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The S&P 500 closed the month of May on Friday recording a gain of 6.15%. All things considered, we view the price action in May as very constructive and another sign of "accumulation". We believe that a retest of our all-time highs in the ~6,100s is the main event in the on-deck circle!
The S&P 500 gained 2.92% this week with Friday's close at 5,686.67. Finally, a two-week winning streak, and not just any two-week winning streak either! The index has gained a whopping 7.65% the last two weeks, the strongest two-week advance since the week ending October 28, 2022 - the last time the S&P 500 left a polarizing bottom on the chart. What's next?
The S&P 500 plunged -9.08% this week with Friday's close at 5,074.08. It's stunning to write and it brings back jarring memories to almost exactly five short years ago. we've placed a bullseye between the ~4,766-4,966 price region and this is where we have conviction in the idea that the S&P 500 will find its footing. In other words, we don't think it gets worse than that here in the month of April. While the price action feels totally bidless, we're not headed to zero within weeks. This sets the stage for a stunning "bear market rally".
The S&P 500 fell -1.00% this week with Friday's close at 6,040.53. The index woke up with a case of the Mondays this week with the S&P 500 opening the week at 5,969.04, a gap down of -2.16% relative to last Friday's close at 6,101.24. We traded back up to 6,120.91, a mere 7.27 points below our all-time high at 6,128.18, but that's where the S&P 500 got Trumped!
The S&P 500 surged 4.66% this week with Friday's close at 5,995.54. Friday's close is a new all-time high daily and weekly close. Nobody knows what's next for the price of the S&P 500, but the cumulative price action here in 2024 supports the idea that there is a tailwind behind the equity market's back. And since strength tends to beget strength in equity markets, there's a good chance that tailwind is going to persist for a while longer.
The S&P 500 gained 0.22% this week with Friday's close at 5,751.07. Friday's close is a new all-time high weekly close, the third consecutive week to finish at a new all-time high. The index has now increased four weeks in a row, and seven of the last eight overall. It's a time to invest as if the best is yet to come while being prepared in the event the worst is just around the corner.
