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“No man’s knowledge here can go beyond his experience.” – John Locke
Well, we have almost made it through what has in many cases been the busiest week of the year. Between the busiest week of earnings season for the S&P 500, a lot of economic data, and an FOMC decision, there was no shortage of catalysts this week, but there was little downside associated with any of them as equities- at the index level- continue to defy gravity. Not only have we made it through a busy week, but 2021 is already a third over! Time flies when you’re having fun!
Read today’s Morning Lineup for a recap of all the major market news and events including the biggest overnight events, some key earnings reports, economic data from around the world, as well as the latest US and international COVID trends including our vaccination trackers, and much more.
Heading into the week, investors were on edge with the looming earnings reports from the S&P 500’s largest companies all coming in the same week. Expectations were already high, but were they too high? While not all of the major companies reporting impressed investors, the major equity indices have made it through the week unscathed. While equity futures are indicated lower this morning, every major index in our Trend Analyzer has seen positive returns over the last five trading days and in a number of cases big gains.
This week’s performance has been mostly contingent on market cap- the smaller the better. The top-performing index over the last five trading days is the Russell Micro-Cap index (+3.56%), while the Dow is the only index ETF that is up less than 1%. In between those two extremes, market cap has clearly played a role in performance with small caps performing best and large caps doing not as well. That’s basically been the story when it comes to YTD performance as well, although, towards the end of Q1, we saw the opposite trend play out. Ironically, even though the Micro-Cap ETF is the top-performing ETF over the last week and YTD, it is the only ETF that isn’t overbought, and it’s actually just barely above its 50-DMA.