If the market feels lackluster, that’s because it has been. In fact, we enter today's session with the third-longest streak of gains and losses less than 0.20%. With the summer doldrums already here, what does that mean for the stock market? Well, all other periods on the list happened in the middle of bull markets, so it seems it is a period of concern and reloading.
While every bull market is different from the historic basis, it would not be surprising if it would take another two years for the current rally and a lot more upside.
However, another thing working for the stock market is the lackluster recovery. It's not too hot (for sure) and maybe it’s not too cold. Obviously, a recession isn't good for the stock market. Neither is the Gross Domestic Product (GDP) growth of less than 1%, which means the Fed had better be right about a big bump in the second half of the year.
This week, housing takes center stage and after that huge housing starts report earlier last week, single- family homes are up 15% from a year ago; there is anticipation there will be big beats.
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