Stock Market Outlook entering the Week of March 3rd = Uptrend
- ADX Directional Indicators: Uptrend
- Price & Volume Signals: Uptrend
- On Balance Volume Indicator: Uptrend
ANALYSIS
The stock market outlook shows an uptrend in place, with almost no change in the underling signals versus last week.
The S&P500 ($SPX) rose 0.9% last week. The index sits ~5% above the 50-day moving average, and 13.5% above the 200-day moving average (historically elevated).
SPX Price & Volume Chart for the Week of Mar 03 2024
All three signals show an uptrend in place. The DI+ remains over 40 (yellow light). There were no distribution days during the month of February, although trading volume was below average most of that time.
Taking a look at sectors with the S&P500, the big winner was real estate, which benefiting from the decline in rates last week. The sector rallied 3.3%, outperforming the broader index by almost 2%. Healthcare the worst sector, underperforming by ~2%.
COMMENTARY
90% of Q4 earnings season is complete and the results are in:
- Revenues: +3.4% (y/y)
- Earnings: +10% (y/y)
In case you’re wondering: No, that’s not an earnings recession! That’s actually pretty solid earnings growth. Soft-landing indeed.
This week, we get ISM services inflation on Tuesday, JOLTS on Wednesday, and NFP on Friday. There are also a handful of speeds from the U.S. Federal Reserve, including two from Chairman Powell on Wednesday and Thursday.
Best to Your Week!
P.S. If you find this research helpful, please tell a friend.
If you don’t, tell an enemy.
The Safe Investing Blog 