The S&P 500 is rallying for a second day in a row and is now less than a percent away from making a new 2016 high. As you can see in the one-year chart of the S&P 500-tracking SPY ETF below, once the 2016 high is cleared, it doesn’t have much farther to go to get to new one-year highs.
Semiconductors — often viewed as a leading group — have indeed made a new 2016 high today, as shown in the chart of the Philly Sox index below. Market bulls are hoping this rally in the semis foretells better days to come for the broad market.
After falling more than 15% on a year-to-date basis by early February, the Philly Sox index has surged back and is now up 3.5% year-to-date. That’s 70 bps more than the 2.7% gain the S&P 500 has posted through this morning.