SPY has wind blowing in its sails
SPY has been a nice recovery. Since October it is up almost 21%. On Fib, SPY is trading above the 50% line and it is trading above the 200 simple moving average.
What has given SPY the rocket fuel most recently?
1. Earnings holding up better than expected. Mike Wilson's expectations of earnings drop did not come true.
2. Labor market is staying strong and keeps up the demand side of the economy, which is getting weaker as the higher rates and the regional banking crisis have eroded credit and investments.
3. Generative AI story has given a new fuel to NASDAQ with NVIDIA becoming the new beloved baby
4. The political uncertainty around the US Debt Ceiling has abated with the Republicans and the White Housing coming to some agreement (kicking the can down the road and not fixing the long term issues).
What has given SPY the rocket fuel most recently?
1. Earnings holding up better than expected. Mike Wilson's expectations of earnings drop did not come true.
2. Labor market is staying strong and keeps up the demand side of the economy, which is getting weaker as the higher rates and the regional banking crisis have eroded credit and investments.
3. Generative AI story has given a new fuel to NASDAQ with NVIDIA becoming the new beloved baby
4. The political uncertainty around the US Debt Ceiling has abated with the Republicans and the White Housing coming to some agreement (kicking the can down the road and not fixing the long term issues).
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