E The Part Of The S&P 500 Easily Making New All-Time Highs

Entergy Corp (ETR)

Entergy Corp (ETR) is on a tear upward.

Again, these data make clear that the key to the S&P 500's potential for upward momentum lies in the level of risk appetite for high volatility (aka growth) stocks. Right now, that risk appetite is at best tentative. Granted, one can argue that investors have a large appetite for risk given a willingness to pay extremely high multiples for utility stocks like the 23.1 P/E for ETR which has flat revenue growth and quarterly earnings contracting 3.7%. Investors usually flock to utility stocks for yield. ETR still pays 3.1%, so it represents a "better buy" than government bonds and even the S&P 500's (SPY) 1.8% (all data from Yahoo Finance).

I continue to watch the relationship of SPLV and SPHB for insights into the underlying health of the market. The S&P 500 still trades above its 50-day moving average (DMA), but this support will not likely last long without renewed buying interest in the components of SPHB.

S&P 500 (SPY)

The S&P 500 (SPY) looks like it is losing steam right under its all-time high.

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Disclosure: Long NVDA.

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