From the desk of Willie Delwiche.
Key Takeaway:
- Getting back to “Yes” on our Bull Market Re-Birth Checklist still requires some heavy lifting.
- Beneath the surface, stocks are getting back in gear.
- The Fed isn’t a friend and overcoming higher bond yields could be a challenge for stocks.
Stocks turned higher last week, and while Friday saw more new highs than news on the NYSE for the first time in two weeks, it was not enough to prevent a third consecutive week of new lows outpacing new highs (on both the NYSE and NASDAQ). Friday’s strength was sufficient to produce an encouraging up-side volume thrust and our short and intermediate-term risk indicators moved back into positive territory last week. If stocks can build on that progress, we could soon be hitting “Yes” on a number of our Bull Market Re-Birth Checklist criteria. But there is still plenty of work to be done.
