STILL NO COMPETITION FOR EQUITIES.

They are performing well in YTD basis and we are expecting after the break out of SP500 more gain further this year. All the three leading US benchmarks are finally positive for the year, and first in the history SP500 closed over the record, above 1.900 level. That is a significant sign of bull market. Mr. Market is discounting all bad news and the optimism is still modest so the sentiment is perfect to gain US indices further, most possible at the lagging Russell 2000 will perform really well in the following weeks.

Last week US markets gained 4 days out of 5 and had only 1 day sell off. Friday, looked like this, before the Memorial Day market closure.

• DJIA +0.38% 
• S&P500 +0.42%
• Nasdaq +0.76% 

All of them are in the positive territory again in 2014. The Dow and Nasdaq are up 0.2% YTD, while the S&P500 is up 2.8%.

Technically the SP500 is showing bullish patterns, no doubt. As we forecasted last week it took couple of days to close above the 1.900 key level. It’s done. After a week consolidation with four dips - at 1.870 - the index broke out Thursday and now the air is opened to further gains. Our target for 2014 is the 2.000.

The BFM Assets Team.