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Rally Stalls

Please click here for a chart of S&P 500 ETF (SPY) which represents the benchmark stock market index S&P 500 (SPX).

Note the following:

  • The chart shows that the stock market rally has stalled. Prudent investors already knew from the yield curve, but the momo crowd is now being confronted with signs of a slowing economy.
    • RH, a maker of high end furniture and other household goods, was very negative on the economy based on their new orders.
    • TSM, a Taiwanese company that manufactures a majority of the advanced chips in the world including those for  iPhones, says that the demand for consumer electronics is beginning to slow.