Stocks gain momentum heading into summer


The US stock market has had it share it drama, what with all the volatility in 2018.

As of May 24, the Dow Jones Industrial Average is basically flat on the year and the S&P 500 Index is up roughly 2%.

Yet as we head into summer, I think things may be looking up.

 

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Big Mo’

Technical analysts have noted that the 58% of the stocks in the S&P 500 are trading above their 50-day moving average.

More broadly, “seven of eleven sectors have healthy readings above 50%,” according to an analysis Bespoke Investment Group.

 

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Source: Bespoke Investment Group

 

Bullish Sentiment

There’s also good news on the market sentiment front.

Bullish sentiment advanced to 38%, up from 36%. That’s the third straight week of up gains.

It’s also the best sentiment since a recent high in mid-April, according to Bespoke.

 

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Source: Bespoke Investment Group

 

Takeaway

As we transition into June, I think there are tentative signs of momentum in the US stock market.

Earnings are robust, and investors are starting to feel more bullish about the outlook.


Photo Credit: texaus1 via Flickr Creative Commons

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Xavier Brenner
Xavier Brenner
Xavier Brenner has covered global market, business and economic trends for Interactive Brokers Asset Management since 2013. An experienced financial journalist, Brenner offers analysis and insights on the stories that matter to the discerning investor.