S&P 500 Rally Has Legs, Oppenheimer's Wald Says

Ari Wald, head of technical analysis at Oppenheimer and Co., discusses recent market trends, highlighting a potential recovery in equity markets. He analyzes technical indicators like the S&P 500's 200-day moving average and sentiment indicators such as the put-call ratio and VIX. Wald also examines the bond markets' relationship with equities, noting extreme interest rate levels and their impact on cyclical and defensive trades. He suggests investment strategies focusing on pro-cyclical areas like aerospace and defense, which may perform well regardless of interest rate directions.

What is the significance of the S&P 500's 200-day moving average in recent market trends?

• It predicts future market crashes.

• It serves as a critical support level.

• It indicates a long-term downtrend.

• It shows the highest market volatility.

How does the put-call ratio reflect market sentiment?

• It shows optimism when high.

• It indicates pessimism when low.

• It reflects pessimism when high.

• It is unrelated to market sentiment.

What does an extreme reading of the 10-year U.S. Treasury yield suggest?

• A stable market environment.

• A decrease in stock market volatility.

• A potential shift in cyclical and defensive sector performance.

• An increase in inflation rates.

Which sectors are highlighted as having potential regardless of interest rate changes?

• Consumer Goods and Services

• Technology and Healthcare

• Aerospace and Defense

• Real Estate and Utilities

What is the significance of the XAR ETF's performance relative to the S&P 500?

• It suggests a correlation with interest rate hikes.

• It shows the ETF's underperformance.

• It highlights the ETF's potential to break through resistance levels.

• It indicates a decline in the aerospace sector.