The buying lasted into the close which pushed SPX up to the top of the recent range. Breadth was strong again at +62%. New highs picked up a bit to 117. The intraday low pierced the 20 SMA. Will the bulls engineer a launch off that MA and get through resistance?
The futures are just hanging out above the 50 SMA.
The green line got across 50, but just barely. The bulls are trying to show a little strength.
The Dow closed just 46 points from 20,000. Another run at that tomorrow seems possible. Whether it can stay there if it gets there is anybody's guess.
Interesting chart in this one. Goldman "Concerned" As Risk Appetite Index Hits Record High
Speaking at a conference in London, Goldman MD Christian Mueller-Glissmann warned investors, "valuations are at very high levels. And that concerns us when it comes to making progress in stocks, unless you maintain a very high level of optimism."
"This is a chart which a lot of people have in the back of their mind right now. It's our risk appetite indicator. That essentially shows you across asset classes what the risk appetite is. And it has equity risk premium in there it, it has VIX, it has everything that reflects how bullish markets are and it's real time."
"And guess what, in the middle of December, that indicator had the highest level in the history of the indicator. We are not at the beginning of this optimism trade, we're really in the middle of that optimism trade."
Now if they would be so kind as to tell us when the optimism trade was over!
Bob
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