The S&P 500 is flirting with new a new all-time high which was last set on May 10. The index failed to reach 4238.25 by 1.25 points which is a high failure and considered a double top if the bulls do not retest soon. A high failure or double top is bearish. However, given the S&P 500 bullish trend, it’s likely the index will at least probe 4238.25 if not today, then this week.
Markets are in a holding pattern, waiting for Thursday’s CPI data for another gauge on the US economy to anticipate when the Fed will reduce their economic support. For Wednesday, the economic calendar is light with Wholesale Inventories @ 10:00am ET and Oil @ 10:30am ET.
A new report by ProPublica shows the 25 richest Americans paid little or no income tax over the last several years. This includes Jeff Bezos, Elon Musk, Michael Bloomberg, and Carl Icahn. Much of their wealth is in assets which instead of selling for income, the common tax strategy is to take out loans against the assets, allowing the assets to continue to grow while using part of the asset value.
Clover Health Investments (CLOV) has become a new meme stock investor darling. The stock was up 85% on Tuesday and is up another 24% premarket.
Longtime favorite GameStop (GME) reports earnings on Wednesday. Other earnings include CPB and VRA.
Volatility remains muted and should stay that way unless the bears find a reason to send prices down.
No Size bias once again as Size is just not interested in trading below all-time highs.