U.S. equities recorded a volatile sideways pattern for nearly two years. Many market participants repeatedly called a breakout to the upside during that time. Not surprisingly, some reiterated that their case is on the right track during the past few days. They expect that the most recent highs in the S&P 500 mark the beginning of a new bull cycle in U.S. equities.
Source: dshort.com
There is not much evidence that the 2009 expansionary cycle even ended. Hence, the upbeat case is rather for a cycle extension instead of “a new bull cycle”. Instead, macroeconomic