The SandP 500 is up 2.1% and the Nasdaq is up 2.5%, both session highs. This looks a lot like stocks that are just being shorted. I might back the trade if Treasury yields or the US dollar fell, but the opposite is true. The US 10-year yield is up 6.7 basis points to .01% today, with the dollar trailing just below the pound. Copper is also down 2.3%, highlighting weakening global growth. As for economic data, today’s PCE data was in line with estimates, but hardly caused a celebration as expected home sales rose. Even in the stock market, the change seems curious, with Amazon down 8%. The thing about pressures is that they can last a while. The challenge for the stock now is whether the SandP 500 can close above the October peak. There is a growing belief that Republicans will at least divide Congress and stocks, and November will be a seasonally strong time for stocks.
