ALL EYES NOW ON S&P500 TEST OF 1.900

The SP500 missed by a hair the 1.900 key sentiment level. But no question that the strong and positive momentum is in the market. This Monday rally happened on no news day, which is the great marker of the bull’s strength, without any macro news the market performed well. That strongly affirms Mr. Market wants to go higher and higher.

Yesterday’s market shortly:

- Pretty green day
- New historical highs Dow, SP500
- DJIA triple digit gain
- S&P500 only 3 points distance from 1.900
- All US indices are Europeans are massively gained

• Dow +0.67% 
• Nasdaq +1.77% 
• S&P 500 1,897 +0.99% 
• Russell 2000 +2.3%

The small cap index Russell did a fantastic day. The Nasdaq made its biggest one-day percentage gain since January 30th. This brutal bullish rally moved back SP500 and Dow to new record levels. The S&P 500 with +0.97% had the best one-day percentage gain since April 16. In 2014 so far the SP500 hasn’t been strong as last year, has risen around 1.6% so far in 2014, at this point last year, it was up close to 14%. But the market is always different and we are only expecting 6-10% for this year. So if we are right the second part of the year could be a great bullish run.

After the four-month of consolidation and ranging there is a now a great bullish momentum which can lift up to higher levels all US indices. Recently, we have bigger exposure since April in Nasdaq because it is lagging behind and still better bargain than the leading SP500 or Dow. So, we always prefer the bargain index that shows the positive and bullish momentum, like the Nasdaq. We see more room for further gains comparing to SP500.

The BFM Assets Team.