During the second half of 2015 and into early 2016, the NYSE Composite Index (INDEXNYSEGIS:NYA) was trading below its key moving averages. But the landscape of for U.S. equities market would switch from bearish/cautious to bullish in mid-2016 as prices moved back above these moving averages.
As I’ve said many times, bad things happen when key stock market indices lose their trending price averages. And vice versa.
As the U.S presidential election approached, stocks had lost some momentum… but the NYSE was holding just above its key moving averages. Uncertainty was pervasive. But the immediate move higher has given equities some breathing room.
At the same time, a lot is happening under the market’s surface. In this week’s stock market video, we discuss this changing market dynamic and what it means for key asset classes and portfolio management.
Thanks for watching and have a great week.
Twitter: @CiovaccoCapital
The author or his clients may hold positions in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
