As the world’s top investment manager and financial market journalist, I am here to provide you with exclusive insights into the current state of the stock market as we enter September 2023. The market’s uptrend, which began earlier this year, continues to show strong resilience despite experiencing routine corrections. In my latest analysis, I delve into the recent market action and discuss the potential implications for investors.
Market Update: Breaking Through Resistance Levels
The chart of the S&P 500 below showcases the recent surge in the index, surpassing multiple resistance levels and key moving averages. This robust advancement indicates that the correction phase may have concluded, with the market now poised for further upward movement. However, the S&P 500 is currently facing a critical area of resistance at its previous high.
In addition to the S&P 500, other technical indicators point towards bullish strength in the market. I will be presenting charts that highlight these positive developments. The Invesco S&P 500 Equal Weight ETF has already exceeded its pre-correction high, signaling underlying market resilience. Furthermore, we are witnessing a healthy shift from technology stocks to value sectors like industrials, real estate, financials, utilities, and healthcare. This sector rotation is a key indicator of a robust bull market.
Analysis of Market Indicators
The Equal Weighted S&P 500 has broken through a significant resistance level, indicating broad market participation in the rally. This breakout suggests that the current uptrend is supported by a wide range of stocks, strengthening the case for continued market growth.
Sector rotation into industries such as industrials, real estate, financials, utilities, and healthcare further reinforces the bullish outlook. The widespread strength across various sectors signifies a healthy market environment, supporting the potential for sustained gains.
Identifying Weakness: Nasdaq 100 Performance
Contrary to the broader market, the Nasdaq 100 ETF (QQQ) is lagging behind, failing to break above its downtrend line and pre-correction high. This underperformance in the technology sector could impact the overall market’s ability to continue advancing, making it a crucial area to monitor closely.
Summary and Portfolio Allocation
In conclusion, the stock market’s uptrend remains intact, with positive signs of recovery and sector rotation. While there are areas of strength, such as the Equal Weighted S&P 500 breakout, investors should keep a watchful eye on the Nasdaq 100’s performance for potential market impact.
In response to the market trends, client portfolios have been adjusted to capitalize on the bullish momentum. With a nearly fully invested stance, I am confident in the current market environment and the opportunities it presents for investors.