Bulls are in the market. Mr. Market made a nice rally in the last couple of days. S&P500 is on new historical high, Spanish IBEX and Italian index are on multi year high. The momentum is so strong on the long side.
Yesterday US markets ended sharply higher, the lagging Nasdaq made a great rally +1,64%, and again on positive side YTD. What a green day.
- Dow 16,533 +75 +0.46%
- Nasdaq 4,268 +69 + 1.64%
- S&P 500 1,886 +14 +0.73%
The intraday high was 1,889 for S&P500 which means we are so close to hit the 1,900 mental level. The first day of Q2 2014 get started really well. The index took out yesterday the key resistance level at 1,880 so the way is opened up to north.
The internal structure of the market is not the perfect because the technology sectors are performing poorly and the defensive ones are doing well. But never mind, the point is the market is on new high, so we don’t need to cry.
All European indices are broadly higher, take a look at ITA40 from Milano, how strong the bullish sentiment. We are buying the Italian market since 2013 December and we are expecting more upside move this year because it is massively undervalued and the new young government started the war against the corruption and bureaucracy so it is great fundamental underlying parameter for the bulls in Italy.
The BFM Assets Team.
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