Pre-Summary
Yesterday we asked whether the market’s laggards were about to catch up. Today the S&P 500 pushed to new highs while the NYSE Composite followed through from its DCL and the Russell 2000 continued higher from its recent low. The laggards are improving, but the leaders continue to lead.
Yesterday we asked whether the market’s laggards were about to catch up. Today provided another piece of evidence. The S&P 500 pushed to new highs, extending its advance from the recent Day 11 half-cycle low. The broader market also continued to improve.
The NYSE Composite followed through from its recent DCL, closing higher for a third straight session. The Russell 2000 also followed through from its DCL after testing the 200-day moving average.
This is an important distinction. The laggards are beginning to improve, but that improvement has not come at the expense of the market leader.
The leaders continue to lead while participation begins to broaden.
That is a constructive development for the stock market.
Cycle Alignment
S&P 500: The Daily cycle remains right translated and pushed to new highs.
NYSE Composite: Follow-through from the DCL continues.
Russell 2000: The new Daily cycle continues higher following the test of the 200-day moving average.
Cycle Alignment: Leadership remains intact while broader market participation improves.
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