After breaking through the 6,200 level, the S&P 500 has followed the Nasdaq in marking a new all-time high. The S&P Indicator detected a potential new Bullish Impulse yesterday, although this still requires confirmation given the elevated uncertainty. The signal suggests unusually strong inflows into the market.
It’s also worth highlighting that the Russell 2000 has begun to outperform significantly, now closing above its 200-day moving average. The current market buzz centers around IPO activity and the Innovation ETF ARKK, which has reached a new 52-week high.
Such capital flows into unprofitable stocks are typically observed during the final phase of a bull market cycle, hinting that markets could be approaching a peak later this year, possibly in Q4. For further details, see the Market Insight section in this week’s report.
In the short term, the outlook remains firmly bullish, provided that today’s PCE data doesn’t deliver any negative surprises.