What’s Happening With the S&P 500?

NYSE: SPY | SPDR S&P 500 ETF Trust News, Ratings, and Charts

SPY – The S&P 500 (SPY) is up over 100% in the past thirteen months, which starts to warp one’s expectations for the stock price action. Meaning that the seemingly nasty sell off this week is NOT really that nasty in the grand scheme of things. Even in the most bullish of years the market will go down on 40% of the days. And sometimes those negative days get stacked together to make 3-5% pullbacks or even 10%+ corrections. But that doesn’t change the fact that it’s still very much a bull market. Read on below to find out why….

(Please enjoy this updated version of my weekly commentary from the Reitmeister Total Return newsletter).

First off, please be sure to watch the Members Only Webinar recorded yesterday. Here are some of the key topics covered:

  • April Market Rewind
  • Sell in May?
  • Our Trading Plan
  • Portfolio Position Review
  • Hearty Q&A session

Watch Webinar Replay >>

Speaking of webinars, on Thursday 5/6 we are having a new webinar called “Beware Value Stocks?”.  Joining me will be our Chief Value Strategist, David Cohne, who will help me review the 3 fatal flaws of value investing.

Better yet, we will discuss how to easily solve these problems by applying our Top 10 Value Stock strategy with +38.63% annual returns. If that appeals to you, then click below to register.

Join Us for Value Webinar

Now back to this week’s market commentary…

Last Friday my commentary spoke about the market doing the “Hokey Pokey”. In essence, the market had a pretty strong April rallying up more than 5% to a new high at 4,218. And now it is time to take a rest.

So yes, 4,200 will prove to be a spot of resistance followed by some combination of pullback, consolidation, sector rotation. Or in other words…VOLATILITY.

We have seen this 1001 times before. And we will see it 1001 times more in the future. The point being this is the natural way of the market.

Rally > Resistance > Consolidation/Sector Rotation (aka volatility) > Build Energy to Breakout to New Highs.

Reity, why are you so confident this time isn’t different?

First, it is rarely different. And when it is you will see greater bearish catalysts at play.

Second, because I have been investing for 40 years so I have seen this 4004 times or more.

Third, low interest rates still make stocks 2.5X more attractive than bonds. (really…this is the biggest reason making it fairly unnecessary to continue the conversation…but we shall to lock this lesson into place).

Fourth, coming off yet another strong earnings season. Ample details shared in last week’s commentary.

Fifth, economic data continues to show improvement across the board. I have detailed this week by week in commentary. And most recently you have another strong monthly ISM Manufacturing report. No doubt ISM Services and Employment reports later this week will continue to point to continued economic expansion.

Sixth, the Coronavirus #s in the US are dropping as vaccine adoption is well ahead of pace.

Seventh, Biden’s State of the Union address was filled with lots of items that would spark economic growth. This is not Steve Reitmeister, or other Wall Street experts, agreeing that these are the RIGHT policies. It is simply a clear-eyed view that the government checkbook is WIDE OPEN which is stimulative to the economy > corporate earnings > share prices.

There is no reason to go beyond this point because the above is plenty good enough. So our game plan is to keep our calm and act like we have been there before (cuz we have 😉 )

This will allow us to not get shaken out of our quality stocks during this volatile period. Instead we will hang on with great confidence that they will rebound with gusto when the next bull run emerges. And if any great buy the dip opportunity emerges, then we will quickly take action.

What To Do Next?

The Reitmeister Total Return portfolio has outperformed the market by a wide margin this year.

Why such a strong outperformance?

Because I hand-pick the very best stocks from across the POWR Ratings universe—whether it’s a growth, value or momentum play—to bring you winning picks like JCOM, which bought subscribers of Reitmeister Total Return a +75.52% gain in just 5 months!

If you would like to see my latest advice on JCOM and unlock the current portfolio of 11 stocks and 3 ETFs, then consider starting a 30 day trial by clicking the link below.

About Reitmeister Total Return newsletter & 30 Day Trial

Wishing you a world of investment success!


Steve Reitmeister

…but everyone calls me Reity (pronounced “Righty”)
CEO, Stock News Network and Editor, Reitmeister Total Return


SPY shares were trading at $416.90 per share on Wednesday afternoon, up $1.28 (+0.31%). Year-to-date, SPY has gained 11.87%, versus a % rise in the benchmark S&P 500 index during the same period.


About the Author: Steve Reitmeister


Steve is better known to the StockNews audience as “Reity”. Not only is he the CEO of the firm, but he also shares his 40 years of investment experience in the Reitmeister Total Return portfolio. Learn more about Reity’s background, along with links to his most recent articles and stock picks. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
SPYGet RatingGet RatingGet Rating
.INXGet RatingGet RatingGet Rating
DIAGet RatingGet RatingGet Rating
IWMGet RatingGet RatingGet Rating
QQQGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


:  |  News, Ratings, and Charts

The Fallacy of “Peak Everything”

Connected to the inflation conversation is the theory of “Peak Everything”. This idea is making its rounds through the investing world with shock waves of trading activity. Let’s talk about what it is...What it really means for the future of the S&P 500 (SPY)...And why, we will end up on the right side of action. Read on below to find out more…

:  |  News, Ratings, and Charts

Could the Fed’s Rate Reversal Lead to More Volatility in the Stock Market?

Inflation has become a recurring theme in my comments due to a notable rise in inflation metrics and how they have affected the S&P 500 (SPY). The Fed has consistently spoken of inflation being transitory over the past couple of months, which has resulted in investors becoming less concerned over higher prices. But it appeared that the Fed reversed course as it is now, indicating it would raise rates ahead of schedule. This created more volatility in the markets leading to a tough day on Friday. But, if you look closer at their remarks, not everything is as it seems. I will expand on my point below. But first, let's recap the past week in the markets. Read on below…

:  |  News, Ratings, and Charts

2nd Half of 2021 Stock Market Outlook

The stock market (SPY) has continued on a bullish path to start 2021. Yet it is not quite the same glorious bull run we enjoyed from the lows of last year. This market has become more volatile and with less upside potential. However, there is still plenty of money to be made if you look in the right places. That is the very nature of the new presentation I put together. So read on for more info…

:  |  News, Ratings, and Charts

3 Top Biotech Stocks To Bolster Your Portfolio

Illumina (ILMN), Jazz Pharmaceuticals (JAZZ), and Amgen (AMGN) are 3 of the top biotech stocks. The sector has been an underperformer over the last few years but could start outperforming given the aging population, low valuation, and growth potential.

:  |  News, Ratings, and Charts

2nd Half of 2021 Stock Market Outlook

The stock market (SPY) has continued on a bullish path to start 2021. Yet it is not quite the same glorious bull run we enjoyed from the lows of last year. This market has become more volatile and with less upside potential. However, there is still plenty of money to be made if you look in the right places. That is the very nature of the new presentation I put together. So read on for more info…

Read More Stories

More SPDR S&P 500 ETF Trust (SPY) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All SPY News