Thursday, August 21, 2014

Equities: New Closing High on the S&P--Analysts React

We attempt to vary the sources we link to and enforce the discipline with an arbitrary "One link per source per day" rule.
Which we break whenever we feel like doing so.
Great discipline, huh?
Here's our second link to Barron's this 21st day of August 2014:

Don’t Fear the Fed: S&P 500 Hits New High; Dow Industrials Back Above 17,000
Don’t look now but the S&P 500 has hit a new high–again.

The S&P 500 gained 0.3% to 1,992.37 today, its highest close ever. The Dow Jones Industrial Average, meanwhile, rose 0.4% to 17,039.56–putting itself back on the right side of 17,000. The Nasdaq Composite advanced 0.1% to 4,532.10 and the small-company Russell 2000 finished up 0.2% at 1,160.12.,,,

...RBC’s Robert Sluymer and Anna Drotman see another pullback in stocks coming by early September:
Short-term/daily momentum indicators, tracking 2-4+ week directional swings, were helpful to identify oversold market lows in early August. Those indicators are likely to move back to overbought territory heading into late-August/early September and set the stage for another correction into mid-late September. By that time, we expect a more durable intermediate-term entry point to be at hand, consistent with a seasonal rebound through Q4....