The S&P is up for 5 out of the last 6 sessions. That is good news if it means stocks are finally ready to breakout to new highs. However, it is bad news if it just means we are at the top of the same old trading range and about to go lower once again.
Reity, why isn’t the outcome clearer?
There are still too many concerns lingering about. The 4 main issues are Greece, bond rates, dollar strength and the health of manufacturing.
As more of those issues get resolved in positive fashion then stocks will progress higher. On the flip side, if things turn negative in these areas, then stocks will head dramatically lower. Lastly, if they remain question marks, then range bound will be the outcome.
Keep your eyes fixed on these issues and trading accordingly.
aka Steve Reitmeister
Executive Vice President, Zacks Investment Research