By Bryan Rich
November 16, 5:00 pm EST
Stocks end the week on a strong note.
We’ve talked all week about the catalysts to fuel the continuation of recovery in the stock market. The Fed’s signalling that their rate normalization program is in the final steps was a big one. We’ve also possibly cleared the overhang of the potential for broad sanctions on the Saudi government. And now we’re getting movement on the China/U.S. trade negotiations.
Again, just in the past few days we’ve cleared a lot of the fog that has been hanging over stocks.
With that, as we head into the weekend, let’s take a look at a few charts …
On Wednesday, we looked at this chart above. This big retracement level was setting up nice, technically, for another leg higher in the post correction recovery for stocks. It looks like we’re getting it.
And I continue to think this may all end in a sharp V-shaped recovery. In the chart below, you can see what the slope of that move may look like.
The stock market fears are driven by “what-ifs.” Meanwhile the reality (the “what is”) is clearly supportive of much higher stock prices: strong economic growth, subdued inflation, strong corporate earnings and cheap valuations.
Have a great weekend!
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