Markets Trending Bullish now

US markets drive strong YTD returns so far

Three up days can reverse the market trend to become bullish. That is what last week told us. In reality it was more like 9 days. The recent low for the S&P 500 was on Oct 4 after which we had 3 up days, then 3 down days and then again 3 up days. And that ended up driving the S&P 500 to a 1 month high and a move above all the short-term moving averages.

What is interesting is that the S&P 500 is up +19% year to date. This is a really good return so far given that we have had all these inflation related fears as well as the markets coming off a very strong 2020.

In fact all US markets have performed well year to date in 2021. Here is a table of the returns:

Clearly the beginning of the calendar year has been a lot better than the last 3 months. In fact all the returns were in the first 6 months of the year. So, will be interesting to see what the markets do rest of the year.

For the near term all the markets are trending bullish for now.