It’s safe to say this strength in stocks has taken many investors by surprise.
The House’s action to kick the debt-ceiling can down the road to mid-May is a key contributor, as in “relief-rally.”
More importantly, however – and what I particularly want to call to your attention today –is that the leading economic indicators’ spiked higher. This is real and very positive news on the economic data that. This is the crucial driver behind the stock market’s recent strength.
Meanwhile, the Economic Cycle Research Institute’s Weekly Leading Index through January 11 spiked higher.