The NASDAQ is at a new high for the year. The S&P 500 and Dow Jones Industrial Average (DJIA) are rebounding off of the late August lows but still have some distance to cover before they reach new highs. Looking outside of the United States, we strongly suspect that the S&P 500 and DJIA will soon be at new highs for the year as well.
The ETF (PIZ) is the Developed Markets Technical Leaders Portfolio. It has clearly broken out to new 52-week highs. Basically, it is telling us that Europe has switched from being a drag on global economic growth to being a source of stimulus.
Oil prices are down roughly $2/bbl on the belief that Syria may be willing to accept Russia’s proposal to place its chemical weapons under international control.
Going into September and October and on weakness in August, many investors took money out of stocks as a risk-control measure. As the markets gain momentum, that money will return to equities. The Delta MSI remains bullish and we continue to recommend staying long equities.