Rally continues as investors hope for a soft landing
Technical indicators are increasingly supportive, as the S&P 500 has been above the 200-day moving average for a week, and the 50-day moving average will likely break above the 200-day moving average (“golden cross”) for the first time since last March in the next few days. Institutional investors and hedge funds remain conservatively positioned, and money market assets are at record levels. Wall Street strategists are also notably bearish, with the average estimate for the year-end S&P 500 below the current level, indicating that those numbers could be revised higher, the market is ahead of itself, or a combination of the two.