The market’s long-term trend and momentum remain firmly in bullish territory and 52-week breadth data on the S&P 1500 shows no signs of a major market top. That said, sentiment levels are elevated and intermediate and short-term momentum are slowing
Currently, market breadth is very strong with over 80% of stocks in long-term upward trends and does not indicate a top is in the process of being formed. Also, more than 92% of the 50 states in the US are experiencing economic growth and the risk of a recession is quite remote.
Around 1665, the Dutch physicist Christiaan Huygens observed a strange and unexpected phenomenon between two pendulum clocks hanging next to each other. As if someone had joined them through an invisible force, the pendulums driving each clock swung in perfect synchronization.
I have cautioned many times this year about not trying to win the last battle. The past five years are not necessarily the prologue for the future. After the inflationary battles of the 70’s many investors got trapped in their thinking and missed out on the great markets of the 80’s and 90’s.