A CHINK IN THE BULLISH ARMOR?
The Evidence Has Been Improving
In a criminal case, jurors want to see the weight of the evidence evolve over the course of the trial. A weight-of-the-evidence approach works in a similar manner when assessing the evolving risk-reward profile of the S&P 500. As shown below via the topics covered between May 18 and July 11, the weight of the evidence has clearly evolved along a bullish path:
Debt Ceiling - Market Does Not Look That Bad.
S&P Profile - Looks More Like Bullish Periods vs. Bearish Periods.
Sector Strength - Better Than Most Believe.
Stocks vs. Bonds - Bullish Look.
Multiple Timeframes - Converging In Bullish Manner.
Volume - Institutions Are In No Rush To Sell.
Recession - Charts Not Screaming Economic Contraction.
Long-Term Odds - Secular Trend Look.
Rally Broadening - It Is Not Just A Few Tech Stocks