The US stock markets mirrored Olympic gold medalist running champion Usain Bolt by earning its own medal with the SPY bolting to highs not seen since April. The US outpaced other stock indexes while registering five consecutive weekly gains. However, unlike Bolt, the Markets are anticipating its next victory based on a fresh round of monetary steroids from the FED and support of the EURO by the ECB.<\/p>\n
It also interesting to note that while the equity markets rallied sharply in the past few weeks based on these hopes, none of that has materialized, yet, it has still held firm. This inaction by the FED and strong market action has surprised many players. There still is a looming fiscal crisis in the US, a festering Euro crises as well as a slowing Chinese economy. Technically, the market internals are overextended indicating a potential short term correction, but looking strong longer term.<\/p>\n
According to AAII (American Association of Individual Investors), long term bullish sentiment has improved but is still lackluster, with plenty of room to improve. MarkeGauge\u2019s own investor sentiment survey which measures shorter term sentiment, also showed an improvement, but still not excessive. Don\u2019t miss this week\u2019s video as we will cover surprising pockets of strength in both an industry group and a country.<\/p>\n
by Keith Schneider
\nCEO MarketGauge.com<\/p>\n