S&P 500: Upside momentum to continue – BBH

The S&P 500 gapped higher on November 21 and did not look back and the gap between 2584.64 and 2589.17 remains unfilled, and the index set new record highs ahead of the weekend, points out the research team at BBH. 

Key Quotes

“It snapped its first two-week drop in three months.  The NASDAQ also set new records at the end of last week.  The Dow Industrials set their record on November 21 and consolidated during the last two sessions.  The daily technical indicators suggest the upside momentum can continue in the coming weeks.   If the tax bill fails in the Senate, equities may be vulnerable initially, but could recover on ideas that the continuation of the status quo is not so bad as corporates are reporting record earnings and interest rates remain low.”