Morgan Stanley (MS) Stock Outlook.

summary

As we approach the end of another strong year for the stock market, a number of technical conditions are not as strong as they were when we entered 2024. Meanwhile, other sentiment indicators reflect intense optimism – just as they once did. A year ago. The market bottomed in October 2023 and had a great run in 2024 until July, when it took a beating for several months. After bottoming out in August, stocks have had much clearer sailing — albeit with some turbulence lately. At the beginning of 2024, 79% of stocks in the S&P 500 (SPX) were above their 200-day average; Today, that reading stands at 58%, and it has been declining since the beginning of December (when it was 77%). For the S&P 100, the index was at a very high 84% above its 200 day mark at the beginning of the year; Now, that has dropped to a slight rise of 63% (from 79% at the end of November). For the most part, these broad declines have occurred since mid-October. For the Nasdaq 100 (NDX), 87% of the index’s holdings were very strong during a 200-day period at the beginning of the year; Now, the reading is 58%. There were two periods of decline, coinciding with increases in the index. B rising