Even this fast-running Roadrunner pauses at the Handicapped Parking sign.
A bird born to run, it can outrace a human. It can kill a rattlesnake. It thrives in the harsh desert landscape.
Last week, the market paused at the many potential handicap signs.
This week however, the market once again proves it is born to run.
Like a Roadrunner, the market eats poisonous prey with no ill-effect.
Like a Roadrunner, the market outraces many humans, especially those who come in bearish.
Like a Roadrunner, the market thrives in harsh landscapes.
Although agile on the ground, Roadrunners do not fly well.
Over the weekendI wrote, “What’s scariest is an exuberant rally on hope rather than substance. If the market rallies too soon and too fast in anticipation, the drop will occur harder and more rapidly when and if the market loses its patience.”
Will today’s rally, agile on the ground, also be able to fly well?
What are the potential handicap signs the market will have to pause at?
Some might argue if a government shutdown over the border wall is a handicap or not. Kidding aside, it’s one reason our market Roadrunner could pause.
Although the French elections ended with a Macron Le Pen runoff, the EU has to get through the second round.
And North Korea, toying with U.S.’s unpredictable foreign policies, detained its 3rd American captive today.
So, can the markets fly well?
Both the Dow Jones and the S&P 500 gapped up over their 50 daily moving averages and back to unconfirmed bullish phases. They need a second close above the 50 DMA to confirm.
NASDAQ 100 has another potential runaway gap. In order for that to confirm 133.48, the old high, must not be touched.
The Russell 2000 really needs to clear back over 140.00
As for the rest of the Modern Family, Semiconductors tested 80.00and appear likely to fly well above that level and onto new highs.
Transportation is in an unconfirmed bullish phase. Needs to confirm.
