The market is off to another great start. For the past several years we have seen an aggressive move higher in the early part of the year and then a sharp pullback. What does 2013 have in store for us? Let’s discuss what is driving this latest move higher and what has derailed things in the past few years.
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.