SPX bull, euro pitfalls, and China's wildcard
That being said, there are reasons to be cautious...
Looking at the percentage of SPX members that are trading over their respective 50DMAs - this metric nearly hit 90% this week, and that has typically coincided with extremely positive performance going forward, with the SPX averaging 15% 12mo perf and positive returns after nearly every single occurrence of breaking 85%. That being said, there are reasons to be cautious. First, nearly every historical occurrence came after a recession or fiscal / monetary / debt / trading crisis – arguably we haven’t gotten ours yet. Second, these periods of broad stock gains don’t seem to last very long.
