Market Observations and Technical Analysis

Recent market trends indicate bullish movements in major indices, with both the S&P 500 and TSX Composite achieving record highs. Analysts emphasize the importance of observing these highs, as they prefer to see synchronized gains across multiple indices for a more robust market confirmation. Notably, the late cycle phase of the current market cycle raises questions about sustainability, particularly regarding resource sectors which can outperform during these periods. As caution creeps in, due to indicators suggesting frothiness in the market, it is essential to monitor market internals closely for signs of reversal.