S&P 500: All Time Highs
Conditions For Correction & Outperformance Ideas
The Illusion of All Time Highs
The S&P 500 advanced just over +1% through last week and is now +1.47% for the new month and year. The major market barometers, the S&P 500, Nasdaq 100 and Dow Jones all closed last week at all time highs.
The influence of the "Magnificent Seven" (Apple, Microsoft, Google, Amazon, Nvidia, Meta, and Tesla) has notably skewed the performance dynamics within the S&P 500. Although the index reached new highs, this upswing is predominantly attributed to the technology sector. The chart below illustrates that while most market segments achieved all-time highs between November 2021 and January 2022, only the technology sector is currently enjoying a renewed high.
In this week’s note I will provide update to the key S&P 500 charts that shape my analysis of market health and overall direction, key criteria I am monitoring to signal an intermediate top, and share an initial series of trade ideas where I am aiming to capture outperformance in 2024 (spoiler alert: it will not revolve around the magnificent seven)