DC Lite #72

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1. Regime indicator. "After three months in its Downturn phase, our US Regime Indicator shifted higher last month, potentially into its first month of a Recovery (we wait for 2 consecutive months to call a new phase)."

2. S&P Global US Flash PMIs (I). Services PMI eased more than expected but expanded for the 13th consecutive month while Manufacturing PMI beat estimates for the strongest growth since September 2022.

3. Mag 7 short interest. "The rally in Magnificent 7 stocks hasn't been accompanied by increased short interest."

4. SPX breadth. "The 'Teracaps' are seeing outsized gains, but the Fed-induced 'everything rally', followed by the confirmation of a bottom in earnings and strong growth, has allowed that rally to broaden."

5. Bull market behavior. "My bull market behavior checklist has reached 9 out of 9 for the first time since November 2021."

See: JottingOnCharts.