NYHL Spike in New 52-Week Highs: Biggest in 8 Months
The New York Stock Exchange saw fresh 52 week highs spike to levels last seen in late 2017. The January peak followed. That said, several things have changed since January.
Summary
52-Week Highs NYHL Spike: Sales and Earnings
With the majority of the companies in the S&P 500 reporting actual results for the quarter, more than 85% of S&P 500 companies have reported a positive EPS surprise and 80% have reported a positive sales surprise.
Blended earnings growth rate for the S&P 500 is North of 24.6%. This marks the second highest earnings growth since Q3 2010 (34.1%). – FactSet
Chart Courtesy: Yardeni Assoc.
The blue line is above actual 2018 levels. Expectations are for higher prices.
NYHL New 52-Week Highs vs. 52-Week Lows
Despite the constant negativity from the financial media new highs have reached a level not seen since January. The spike indicates a change of character.
SPY traded above all-time high resistamce levels (286.63) for most of the day, until news algos sold the ETF into the close. SPY is red in early trading.
SPY Cycle
SPY remians in an uptrend, with support building below current levels. VBP (look left) reflect a lack of supply above these levels. Volume was above average.
Given the financial media negativity, we are looking for an opportunity on any pullbacks. Sales and Earnings are still the main driver of S&P 500 growth.
Happy Trading,
Vinny
https://theclosingprint.com/CV_Blog/the-spy-is-falling-again/
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