Back a week ago was the first time the S&P 500 (SPY) closed above 4,700. Since then stocks have endured a pretty mild 1.5% sell off (yawn). Yet Tuesday we marched right back up to the line @ 4,700. The obvious question is whether this is indeed a fresh breakout...or more of a fake out??? That will be the focus of our commentary today. Read on below for the full story.(Please enjoy this updated version of my weekly commentary from the Reitmeister Total Return newsletter).
Back to the main question; Is this a breakout above 4,700 or a fake-out?
The honest answer is to say that is “unknown and unknowable” because there are no crystal balls or time machines to give us 100% certainty. However, we have to appreciate that either is highly plausible.