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24 February, 2021

By John Gray

 

“The current Cycle began at the end of 2018. It is over 2-years old and has to date appreciated 68% as measured by the S&P 500 Index (SPX). The percentage of stocks above their respective 30-week Moving Averages (courtesy of Investors Intelligence) is at 90.3% (it was at 4.5% at the bottom of the Mar-20 Flash Crash). Clearly, new investors are entering the market and pushing prices higher. Although the FAANG stocks took a rest during the last six months, others took over, such as Bed Bath & Beyond, PayPal, Abbott Laboratories, Chevron and Exxon, eBay, Deere and Honeywell, JPMorgan and Morgan Stanley, Marvell, Texas Instrument, Rio Tinto, Seagate, Unisys.
Although the current “Bullish Phases” is over 2 years old, it has a lot of strength to continue. However, sooner or later it should give way to a short “Corrective Phase”, although probably not until mid-March.” (18-Mar-21)
Ron Meisels, Phases & Cycles, www.phases-cycles.com