The market continues to march higher in 2013 as the short-term to long-term trends and momentum for the S&P 500 remain bullish. The slight deterioration in the daily readings for MACD BUY signals as well as 52-week high data that previously warned of a potential short term top appear to be resolving on continued strength.
Corporate cash will offset Fed removing punch-bowl
For a number of years analysts have bemoaned the fact that U.S. corporations were hoarding cash, refusing to invest it for future growth. Lagging business investment has continuously been tagged as one of the major factors stifling the economy.
The rally since the start of the year has continued to improve the S&P 500’s long term, intermediate term, and short term trends as all firmly display bullish readings with more than 60% of S&P's 500 stocks having rising moving averages.
While there is great uncertainty for the market in gauging how long the Fed will maintain QE, with some fearing it may end later in the year, I can give you $3 trillion reasons why the Fed won’t end QE this year, and $4.5 trillion reasons why we will likely be talking about QE through 2017.
Today, we got the ECB meeting and the Chinese trade metrics – both of which were bullish catalysts for commodities. The effects of both announcements today were effective in bidding up the euro and supplying the market with U.S. dollars.