By: Adam Turnquist, CMT, Chief Technical Strategist, LPL Financial & Jeffrey Buchbinder, CFA, Chief Equity Strategist, LPL Financial
The script has been flipped in 2023. Last year’s underperformers have turned into outperformers this year, driving the S&P 500 Index up over 5% this month. The pace and composition of the rally have left many investors skeptical over its sustainability, especially amid a lackluster earnings season thus far. Of course, the market is also forward-looking, with expectations for falling inflation and a less hawkish Federal Reserve (Fed) as we progress into 2023. And although the trajectory of the rally will likely slow, seasonal indicators point to a path higher for U.S. equity markets by year-end.
Read the full commentary here: weekly-market-commentary-01.30.2023