The financial markets have been relatively calm during the past week or so. Even though stocks in the S&P 500 Index broke out to new highs intraday on Monday, there hasn???t been much real trading volume pushing the market in either direction.
So far in 2014, the broad-based measure of large-cap domestic stocks is just slightly in the green. Even after the big down month in January, and the subsequent rebound in February, we are right about where we were at the beginning of the year.
I???m actually welcoming the calm here in stocks, as I think the pendulum swung a bit too much in both directions so far this year. Of course, we are liable to see many more big swings in the markets this year, especially if the economic data continues to come in mixed. We are going to get several data reports next week, including the all-important jobs report next Friday, so until then I expect the calm mood to continue.
Read more about what last week’s calmness means for the market going forward at Eagle Daily Investor.