What a stock market! Just 29 days (11.5 percent of the year) of trading into the year and the S&P500 is already up 5.94 percent, outperforming the Presidential Stock Cycle chart analog by 150 bps. This market is not allowing anyone to get in and those who take profits end up buying back their stock 2 percent higher.
If you’re a buyer of this chart analog, the S&P500 is due for a rest and some sideways consolidation over the next month before making its next 6-7 percent move into May. That is, unless, of course, the S&P500 and other developed country stock markets, along with certain commodities, have become a global inflation hedge. Stay tuned!