S&P 500: Flying high - BBH

The S&P 500 made another record high before the weekend and it marked the fifth consecutive weekly gain, notes the analysis team at BBH. 

Key Quotes

“It has only recorded four weekly losses since the end of June. However, momentum has faded recently.  Even though it made a higher high every day last week, it was often by pennies.  Daily technical indicators are looking a bit toppish, signaling the risk of a near-term pullback.  We expect initial support to be seen in the 2540 area.  The driver remains growth.  The Russell 1000 Growth Index rose (~0.6%) for a third consecutive weekly advance.  It brings the year-to-date advance to nearly 22%.  The Russell 1000 Value Index snapped a four-week advance by posting a 0.3% loss.  Year-to-date it is up a more modest 6.7%.”

“The December 10-year US note futures contract finished the week on firm footing.  It closed above the five and 20-day moving averages for the first time since September  11, when it gapped lower after peaking on September 8.  The technical indicators are consistent with further price gains in the period ahead.  It seems as if that the rise in US yields from September 8 through October 6 is over.  The first target is in the 125-28 to 126-10 range.   Retracement targets, past congestion, and the 50- and 100-day averages converge in that range.”