- Last week’s rally took the S&P back to all-time highs, reducing concerns about a more significant decline in the near term. However, with money flows still trending negatively, we may see some recent advance consolidation next week.
- While more stimulus will likely support prices over the next few weeks, the threat of rising inflation and interest rates could undermine growth expectations.
- With valuations still extended, the recent correction didn't reduce speculative fervor. Furthermore, prices remain well-deviated above long-term means, particularly in the small- and mid-cap space.
For further details see:
Bulls 'Rush In' With More Stimulus On The Way