Mid-week market update: Bloomberg reported that BAML strategist Michael Harnett wrote a report back on December 12 forecasting a melt-up. He believed the market's gains would be front loaded in 2020. and he projected an S+P 500 target of 3,333 by March 3. The index reached that level intra-day today, and it's still January. Are the front-loaded gains over?
Sentiment is certainly extended. II %bulls rose to 59.4% this week, and the bull-bear spread has reached the highest level since October 2018.
SentimenTrader observed that Trump's tweets about the stock market had reached a new record.
As well, Macro Charts pointed out that further analysis from SentimenTrader showed that option buy-to-open volume reached a record high for a second week in a row.
It certainly seems that the stock market is "cruisin' for a bruisin'".
The full post can be found here.
Cruisin' for a bruisin'
January 22, 2020 at 16:25 PM EST