The Gilmo Report

October 20, 2021

October 20, 2021 7:16 pm ET

The market has been in melt-up mode with a brisk six-day rally following the pullback and gap-fill at the gap-up rising window of two Thursdays ago. The winning streak took the S&P 500 Index within five points of its all-time high of 4545.85 today before fading slightly into the close. The upside streak is quite a sight to behold, but not one that we aren’t already quite familiar with in this market. It has happened many times before, no matter how unlikely it seems as it unfolds.

In my view, the Fed has still done nothing that could be considered anything close to reversing course with respect to its oh-so-easy money policies. Thus, all the money that’s fit to print is still sloshing about, and we can see its influence at work. With the S&P now back at its prior all-time highs, the potential for a near-term double-top can always come into play. If the indexes were stocks, I would certainly not be interested in chasing them at this stage of the rally.


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