Quality Stocks in Progress… Junk Stocks Sold Out!

Actions keep flirt with THE all time tops For THE S&P 500 (TO SPY) And keep fall short. Meaning This East prove has be A stubborn level of resistance has 4,800. For what East that event? And When will actions Finally to break above? 43 year investment veteran Steve Reitmeister actions her see including A Preview of her favorite action choice NOW. Read on below For THE answers.

As suspected, THE walk East not ready has TO DO new tops above 4,796 For THE S&P 500 (SPY).

That was enough obvious THURSDAY as actions jumped up out of bed In THE Morning has touch those previous tops only has find stubborn resistance with THE wide walk title lower Since there.

For what are actions in trouble has This level?

And What East A investor has TO DO about that?

THE answers has those vital questions will be has THE heart of Today comment.

Walk Comment

A few investment writers will to have A enough short hand, And very inaccurate, path has describe What arrived on Thursday.

They will say You that THE CPI inflation while reading was hotter that expected on THURSDAY Morning. And that cause THE action walk sell disabled that followed.

That East simply not true.

Here East What Really arrived. THE CPI report came out A hour Before THE walk open. And Again always THE walk jumped up upper out of THE grid. But once he touch THE hem of THE previous tops (4,796) A more that 1% intraday sell disabled that followed.

That pain East not SO obvious In THE late session bounce And modest loss For S&P 500. Again East A plot more apparent In THE -0.7% showing For THE little caps In THE Russell 2000 on THE session.

So, THE issue For lack of further action advance East not about CPI report. Just A statement that investors are not prepared has breakthrough resistance has TO DO new summits.

SO, What East holding actions back?

I discussed that In bigger detail In My last comment: When Will THE Bull Walk Run Again?

THE essence of THE history East that investors to have less clarity on THE following moves For THE fed that they had After THE November And December meetings that sets off A tremendous END of year rally. Unfortunately, there has has been A mixed bag of inflation And economic data that calls In question When rate cuts will start.

HAS THE the earlier those cuts could come has THE March 20 meeting. But I sense that THE more readings We get as Thursday CPI report, Or last Fridays stronger that expected job report...it more likely those First of all cuts get pushed disabled has either THE Can 1st Or June 12th fed meetings.

Digging In THE CPI while reading We find that inflation was expected has come In has 3.1% Again enriched has 3.4% on This while reading. Heart CPI was even worse has 3.9% year on year. Just always Also far far Since THE The Fed target of 2%.

For THE “wankers” out there You should dig In THE Sticky Price resources created by THE Atlanta Fed. HAS put he clearly, sticky inflation remains Also sticky. THE main elements are accommodation And wages that are not future down as quickly as expected.

When You appreciate THE conservative nature of THE Fed... and that they State on And on Again that they are "data addicted", SO It is hard has look has THE recent data And assume they are ready has lower rates any of them time soon.

Long history short, I don't do it think that investors are ready For THE following bull run has TO DO new tops until they are more certain WHEN THE fed will Finally to start Cut rates. That delays THE following Upside down move has March 20 has THE the earlier with Can Or June become all THE more probable.

Hard has complain about regulation In A trade range For A while given THE tremendous pace of earnings has END 2023. SO This seems as A reasonable time For actions has rest Before manufacturing THE following big move.

THE Upside down of THE current range connects with THE aforementioned all time high of 4,796...but Really Easier has think of THE lid as 4,800.

On THE inconvenience, that East A little Stronger has deduce. Typically trade ranges are 3-5% Since high has down. SO, For fast mathematics let's go say around 4,600 on THE down. This Also represented THE previous resistance indicate that took A long time has Finally to break above In early December.

THE GOOD news East that I to wait for quality actions has prevail even In A range related walk. Meaning that last year pretty a lot any of them piece of beaten down junk was offer upper. That to party East DONE!

Instead, When You to have A pretty fully estimated walk as We to have NOW, SO there will be A bigger eye towards quality of fundamentals And value proposal. I spelled that out pretty completely In The ace...