After a seven-day run higher in the equity markets, stocks in the benchmark S&P 500 Index now have recovered a majority of the losses they sustained during the previous two weeks.
The recent buying has lifted the SPDR S&P 500 (SPY) back above its 50-day moving average. The Dow Jones Industrial Average also now is trading above its 50-day average. Of course, not all major indices have recovered as briskly.
Small-cap stocks, such as those in the Russell 2000 Index, and large-cap tech stocks, such as those in the PowerShares QQQ Trust (QQQ), remain below their respective 50-day moving averages. Although the so-called Qs have staged a nice comeback during the past week, the index hasn’t yet been able to push above its short-term trend line.
The big talk out there among market pundits, investors and the financial press is expectations for the economy. It seems that nearly everyone is expecting big things from the economy, both here and aboard.
Read more about what the market’s recent comeback rally means for investors at Eagle Daily Investor.