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S&P 500 Index Streaking

S&P 500 Index Streaking

July 06, 2021
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Streaking. Stocks have been extremely strong recently. Here are some eye-opening stats.

  • The S&P 500 Index is up seven days in a row for the first time since August 2020. It hasn’t been up eight in a row since April 2019.
  • The S&P 500 Index has made a new all-time high seven days in a row, the longest streak since eight in a row in June 1997.
  • The S&P 500 Index has closed higher five consecutive months for the first time since five ending in August 2020. That last time it got to six was September 2018.
  • The S&P 500 Index has closed higher five consecutive quarters for the first time since the end of 2016, that streak made it to nine quarters in a row.

The bottom line is a lot of times momentum begets momentum and this much strength very well could lead to continued strong equity performance the rest of 2021.

Daily Insights

US equities are calm after a 7-day win streak for the S&P 500 Index.

  • The S&P 500 Index action is muted as many traders are likely still on vacation and the big news of the week (the FOMC minutes) is tomorrow.
  • West Texas Intermediate oil prices hit six-year high as OPEC members failed to reach a production deal.
  • European markets are mixed through midday trading amid better than expected Eurozone May retail sales.
  • Asian equities closed narrowly mixed as Hong Kong’s (Hang Seng) market finished 0.25% lower.

Technical update

  • The S&P 500 has closed at 7 consecutive record highs, yet the most individual components to hit a new high along with the index on any given day has been 11.5%
  • WTI crude prices briefly hit their highest level since 2014
  • The 10-year yield continues to drift lower towards its 200-day moving average, at just 17 bps this is the closest the yield has been to its key moving average since December

Week ahead. The following economic data is slated to be released this week:

Three Things That Worry Us

We explore three things that worry us that could make the market more susceptible to a pullback as we enter the second half of 2021.  Learn more in this week’s Weekly Market Commentary.

The Krispy Kreme Indicator

In this week’s LPL Market Signals podcast, LPL Research discusses why stocks are choppy in typical year two fashion, with many worries are creeping in and the upcoming Krispy Kreme IPO near the top of the list.

 

IMPORTANT DISCLOSURES

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change.

References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.

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All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

All index and market data are from FactSet and MarketWatch.

This Research material was prepared by LPL Financial, LLC.

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