Alcoa started the earnings season on Monday and Wall Street seemed to like the better-than-expected report as the rally continued on Tuesday.
After yesterday’s close, Intel’s report card not only exceeded expectations, but 3rd quarter guidance was positive and could provide more upside momentum today.
The S&P; 500 raced towards the 1,100 level, but sold off in the end before reaching it. We may very well see another attempt today, but with major indexes now having completed a six-day winning streak, some pull back is in order.
Mish at Global Economic Trends featured an interesting story and graph showing how the stocks in the S&P; 500 have been tracking the index to the highest degree. Last time these extreme conditions occurred was in October 1987, just prior to the crash.
Sharp rallies on relatively low volume (with indexes below their long-term trend lines) just don’t give me the warm fuzzies.