This is The Takeaway from today’s Morning Brief, which you can sign up to receive in your inbox every morning along with:
The Dow Jones Industrial Average (^DJI), Nasdaq 100 (^NDX), and S&P 500 (^GSPC) all notched record highs on Wednesday. The latter, the world’s benchmark stock index, also came tantalizingly close to hitting the big, psychological 5,000 level for the first time.
Meanwhile, stocks are now in one of the seasonally weakest months of the year, with an even weaker month ahead often seen in election years. We’re also sitting on a monster three-month rally that history suggests might take a few weeks to digest.
While no one is suggesting investors should tear off their “S&P 5,000” hats and short Nvidia (NVDA), it’s a good time to take stock of what’s been working this year and of some of the increasing divergences that might need correcting.
Classic Dow Theory posits that the…
