S&P500 Gains 1.4% this Week

JC Parets
March 18, 2023

We saw a very respectable 1.4% rally in the S&P500 this week.

But the index is still stuck below overhead supply.

Nothing has changed.

This is specifically at the index level, of course.

You see, while many sectors were doing great throughout the back half of last year, Technology and other growth areas simply were not.

This held the S&P500 back.

In 2023 we've been seeing the opposite.

It's Technology and other growth that's been working the best.

With the US 10-yr yield closing the week at its lowest levels since September, this has kept a bid under Tech stocks.

We've already discussed that this week.

Meanwhile, with lower rates we've seen lower Oil prices. Look at the break below the 2018 highs:

This recent break in Oil futures likely means that Energy stocks won't be breaking out any time soon.

Just think, even with the monster move in Energy the past couple years, this sector still has not broken out of this 15 year base!

More time is most likely necessary here.

Which is fine.

If/when the time comes, Energy should be a great buy again. Heck, it could even come at much lower prices, and then a 4th attempt at those highs, before they finally get going.

My suspicion is that Energy stocks, as a group, will likely need Crude Oil back above its 2018 highs for a sustainable rally to begin.

Monday Night Strategy Session

The March Mid-Month Strategy Session for ASC Premium Members is happening this Monday, March 20, at 6:00 p.m. ET.

ASC Premium Members, click here to register.

If you are not an ASC Premium Member, we invite you to call Mary for a free consultation and a potential account upgrade.

She's a trader too, and she uses the full suite of ASC tools in her process.

Non-ASC Premium Members, call Mary +1 (323) 421-7910.

Mary is authorized to tailor solutions that fit your needs -- and get you inside the virtual room for the Mid-Month Strategy Session.

As always, if you have any comments or questions about recent price action, please reach out.

We're ready to help with just about anything related to markets, trading, and investing.

Drop us a line.

JC

 

 

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