It may be more so on style than substance that President Donald Trump’s dismissal of FBI Director James Comey fails very badly. Yet, in spite of what were broadly accepted reasons for the dismissal, the disquieting manner in which so many aspects of it were handled became the ‘substance’ in terms of the lower standing of the President even within his own party; and needless to say the not-so-loyal opposition from the Democratic Party.
The S&P 500 and the Nasdaq opened at record highs on Tuesday amid rising appetite for riskier assets following Emmanuel Macron's victory in the French presidential election and a strong U.S. corporate earnings season.
The old adage to “sell in May and go away” has not held in recent years. In fact, May has produced positive performance for four consecutive years in all three major indexes. That is the strongest run in May since the heart of the bull market when the S&P 500 produced 13 consecutive positive returns in May from 1985 through 1997.
Seriously, ever since Wednesday the S&P 500 has been drifting lower and the move to the recent high has a calculation to it. From the low on the 13th we can make a case for a first leg of 24 points and a bigger leg of 63 points. You don’t even need the calculator to see it’s a 2.62 ratio which means we either have a high or a 3rd wave high. It’s also back at the top of the channel lines. Since Wednesday they put in a bear belt on Friday.
World stocks hit a record high on Wednesday after strong earnings and the prospect of tax cuts for corporate America boosted U.S. shares and the euro held on to recent gains as political concerns in France ebbed.