Back on January 4 and January 7, I was looking at the potential for the stock market to put together a decent rally. Well here we are on January 16 and stocks have been acting downright frisky.
About that Rally…
On Wednesday, I discussed the possibility that a rally might be brewing. For Exhibit A, I pointed out that the S&P 500 held above support at 3,818 for 10 of the previous 11 days. Exhibit B was the simple observation that stock prices in general had held pretty steady, even as the newsflow leaned negative – with a downgrade for bellwether Microsoft (NASDAQ: MSFT) and negative demand news for Apple (NASDAQ: AAPL) and Tesla (NASDAQ: TSLA).
Well, here we are: 2023. With nearly 2 whole trading days completed for the new year, I thought *now* would be a good time to take a look at the recent action and make some sweeping generalizations about how stocks will trade over the next 12 months.