By Markus Heitkoetter
It was a big week for stocks. The S&P closed at 1949.44, a new record all-time high. The S&P was up +9 points on Friday, ending the week +26 points higher.
The DOW also joined the “all-time high” party, with a new all-time close at 16924.28. The DOW was up +88 points on Friday and +207 points for the week.
Helping fuel the market rally was Friday’s job report. With U.S. payrolls rising 217,000 in May, unemployment is at 6.3% -the lowest level since the recession began.
With the enthusiasm of the recent rally the VIX or “Fear Index” is at lows that haven’t been seen in 7 years.
Will we see more highs this week? Or is it time for a major correction?
Since April, small cap stocks have been lagging the market. While the S&P and DOW made new all-time highs, the Russell 2000 remained in the red for the year. But with last week’s rally the Russell is FINALLY back into positive territory for the year!
The S&P is up +5.5% YTD while the Russell is up +.1% YTD after Friday’s +1.0% move. Will small cap stocks finally start to make a move?