The S&P 500 finished Monday at the highest levels in history and the index sits a few points shy of 4,300.
As I’ve been saying for a while, high tends to get even higher and that’s definitely the case with this market.
We will eventually reach a point that is too high (because we always do), but cynics have been calling for a top at 3,800, 3,900, 4k, 4,100, 4,200, and soon to be 4,300. Is there any reason to believe they will be right this time?
That said, this rally could very easily stall at 4,300, but there are not any signs this is going to happen. And until we see evidence in the price action that the trend is changing, we stick with what has been working.
This rally will die like all of the others that came before it, but that cannot happen as long as this bull market keeps making higher highs. Until something changes, keep giving this market the benefit of the doubt.
The FAANG stocks are finally getting their act together after lagging behind all spring. FB and GOOGL have been leading the charge with both making record highs for a while. And AAPL and AMZN are not far behind. NFLX has been the lone laggard, but even that one is showing life following its latest buyable bounce off of $500 support.
Now that the FAANG stocks are trading well again, look for these highfliers to start leading the rest of the market higher.
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Jani Ziedins (pronounced Ya-nee) is a full-time investor and financial analyst that has successfully traded stocks and options for nearly three decades. He has an undergraduate engineering degree from the Colorado School of Mines and two graduate business degrees from the University of Colorado Denver. His prior professional experience includes engineering at Fortune 500 companies, small business consulting, and managing investment real estate. He is now fortunate enough to trade full-time from home, affording him the luxury of spending extra time with his wife and two children.