Stock market conditions are generally positive; however, not all indexes/sectors/industry groups are going up in unison.
Below is a year-to-date chart of the S&P 500 and despite a couple of large drops, this index is in a confirmed uptrend.
The Nasdaq 100 Index saw a sizable drop from its February high but recovered and advanced strongly.
The Russell 2000 (Small Cap Index) had been the strongest index, however, it has been consolidating for the past couple of months. It is unlikely that the broader stock market will continue to advance without participation from Small Caps. Given positive market conditions, I believe odds favor Small Caps gaining strength in the coming weeks and playing catch-up with the broader market.
While there has been a good amount of rotation occurring in the market, the stock market is in an uptrend and conditions are currently positive.
Client Account Update
Client accounts are close to being fully invested.
If you have any questions, please feel free to send me an email.
Craig Thompson, ChFC
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