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Cyclicals Continue To Help Broaden The Markets Out Beyond Tech

The S&P 500 Equal Weighted Index is continuing to advance higher led today by gains in Aluminum, Steel, Industrials and Consumer Cyclicals. This is great news for the possibility of a continuation rally as broader participation beyond mega-cap FAANMG and select Technology names will help keep the current uptrend in the markets in place. The S&P 500 Index is also flashing a bullish bias with today’s move taking it more decisively above the 4300 level which had been marked as a key longer-term area of possible upside resistance.

DAILY CHART OF EQUAL WEIGHTED S&P 500 INDEX

Investors can look at turnaround candidates such as Steel Dynamics (STLD) and Deere (DE) which are reversing downtrends today as they move above their 50-day moving averages with their MACD’s just entering positive territory on their daily charts. Select areas of Technology are continuing to rally as well, as interest in AI related companies remains strong. Investors can use the link below to trial my twice weekly MEM Edge Report for a list of top stock candidates that are poised to trade higher as well as sector rotation insights.

While the markets are behaving in a bullish manner, investors must be aware of Wednesday’s FOMC meeting with particular attention to Fed Chair Powell’s comments regarding interest rate policy going forward. Any hints of future rate hikes may have investor’s hitting the pause button.

For those with any questions including information about my other work, please email me at maryellen@thememgroup

Warm Regards,

Mary Ellen McGonagle, MEM Edge Report trial link