2024 has been a year marked by exceptional returns for a relatively small number of high-flying growth stocks. In recent weeks, top performers like Nvidia (NVDA) have pulled back, and Super Micro Computer (SMCI) remains well below its all-time high from earlier this year. So can the major equity benchmarks continue their Q2 strength if these stocks are not breaking out? First, let’s review the market conditions as defined by the performance of the S&P 500 index. Friday’s session, which initially showed a strong upside reaction after the release of the latest data for the Fed’s favorite measure of inflation, ended up showing weakness as the S&P failed to close above the 5500 level. We remain constructive on the SPX as long as it remains above our “line in the sand” of 5400, which lines up well with trendline support using the major market lows back to October 2023. I’m meeting up with…
