Sunnier Skies This Past Week. But Will it Last?

May 24, 2023
Weekly Market Outlook
By Donn Goodman and Keith Schneider

Last week we shared with you a number of dark clouds casting a shadow on the markets. We emphasized that it was a point where the markets (both stock and bond) either broke down or broke out.

We got to witness both.

The stock market rallied out of a long sideway consolidation pattern and made a new year-to-date high as well as a positive 52-week period. The S&P 500 was up 1.71%, and the NASDAQ 100 was up 3.53% for the week. It was a good positive week, given the potential dark clouds.

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Additionally, the advance-decline lines improved, showing strength in markets that just a week earlier had many analysts and economists voicing ongoing concern. As you’ll see in the charts of the Nasdaq 100 and S&P 500 below with their advance / decline lines (in red), they both seem to be doing fine. See chart of Nasdaq below:

Also Read: Dark Clouds Loom Large Over the Markets

After hitting their lows in October, the markets have continued to rally and have not looked back. One of our favorite market technicians, Ryan Detrick, from the Carson Group, provided an excellent summary of what stocks are likely to do after they have gone 7 months without hitting a new low.

Click here for the chart and to continue to the full MarketGauge MarketOutlook