Usually, it is good news when the S&P 500 closes not only at the highs of the day, but at a new all-time high. Unfortunately, this strength is a symptom of some of the most significant divergences this market has seen in years.
While the S&P 500 looks like runaway momentum, breadth was close to even, other indexes were close to flat, and there were more pockets of significant negative action than positive action. Biotechnology -- as seen in the biotech exchange-traded fund (IBB) -- for example, was hit for a loss of 1.9%, and the entire sector looks like death.
Strength in bitcoin due to rumors that Amazon (AMZN) was doing some hiring in that area helped to produce some upside action in related names, but late in the day, Amazon denied that it would accept bitcoin this year and also denied plans to launch its own coin next year. So far, the reaction to this denial is very sedate.
Oil names enjoyed some bounce, and FATMAAN enjoy slight positive action, but the most notable action once again was the mediocre breadth, while the indexes trended higher.
There is a growing chorus of voices looking for some resolution to this unsustainable divergence, but it just isn't happening yet.
Tesla's (TSLA) earnings are out and are seeing a positive reaction on an earnings per share beat. We will see if the stock can attract some renewed momentum.
Have a good evening. I'll see you tomorrow.
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