This technical support shows the strength of the buy-the-dip force in markets

It turns out there’s technical support as well. According to Bespoke Investment Group, when the S&P 500 closed below its 50-day moving average this year, it has rallied on average by 3.95% in the ensuing week. Since 1945, the average one-week return when the index closes below the 50-day moving average is a mere 0.06% gain.

Now, the S&P 500 merely touched the 50-day moving average this week and didn’t close below it. Still, the factoid, they say, is evidence of the buy-the-dip mentality driving markets at the moment. They warn of course that the firepower won’t last forever, but for now, it’s hard to bet against this stock market, no matter that the rallying bond market seems to be sending the opposite message.

Keith Lerner, chief market strategist at Truist Advisory Services, adds the headline reading of the S&P 500 is obscuring the fact the pullback is already further along than many have realized, with just 36% of stocks in the S&P 500 now above their 50-day average, versus 90% in April. Trading may get “sloppy” over the summer months but the primary trend over the next 12 months remains higher, he adds.

Netflix misses Wall Street estimate

Streaming service Netflix NFLX, -3.28% edged 1% lower missed earnings estimates though its profit forecast for the current quarter exceeded analyst estimates, as revenue met Wall Street goals.

Chipotle Mexican Grill CMG, +11.54% climbed 4% as it topped earnings estimates and reported a 31% surge in comparable restaurant sales.

Verizon Communications rose 2% as the telecom giant also topped earnings estimates.

Tesla TSLA, -0.79% CEO Elon Musk, Twitter TWTR, +2.36% CEO Jack Dorsey and Ark Investment Management CEO Cathie Wood will discuss bitcoin BTCUSD, +0.07% at an event scheduled for noon Eastern.

The founder of real-estate investment trust DigitalBridge DBRG, -0.87%, Thomas Barrack, was arrested for illegally lobbying for the United Arab Emirates during the Trump administration.

The chart

USA, USA, USA — at least in the stock market. The ratio of the U.S. stock market to everywhere else is at unprecedented levels.

The markets

A second-day bounce ES00, +0.92% NQ00, +0.78% is ahead, with Dow futures YM00, +0.97% up over 100 points and European stocks SXXP, +1.65% also climbing. Oil CL00, +4.49% continues to gain, and the yield on the 10-year Treasury bond TMUBMUSD10Y, 1.291% is pushing higher.

Random reads

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