SPX Closes At Its Highs

The SPX closed at a new yearly high today, at 1313 (though not an intraday high). The COMP was also up, but lagged the SPX.

Energy stocks led today's rally, with the group gaining +2.3%. Utilities were also strong, surprisingly, while biotechs continued to lag (-1.12%).

Oil also closed near its highs, at $74.58. The yield on the 10-year fell 2 basis points to 5.11%. Measures of investor anxiety (put/call ratios, volatility indexes) were also lower today.

The strength of this market has to be very frustrating for the bears. It also likely continues to confound those with cash waiting for more of a pullback, a camp I currently find myself in. But each time the market looks like it is poised to move lower, it somehow saves itself.

The SPX has been hovering around this 1310 level for over 6 weeks, and now looks like it might be poised to breakout to new highs. But I wish there were more groups breaking to new highs than just energy and materials. Those groups don't often provide the leadership that sustainable bull markets are made of.