As November kicks off into full swing, and we reflect back on the last few months, equities yet again seem to have shrugged off the doom and gloom of the fall selloff.
Stocks have rallied more than 10 percent since late September alone, recovering the entire selloff from August and nearing, yet again, all-time high territory. The market finds itself at an interesting juncture, as the S&P 500, Dow Jones industrial average and the Nasdaq composite all lie within 2 percent of all-time highs with investors pinning their hopes on further gains through the holidays.
Momentum has risen quickly from oversold to overbought territory, while breadth has escalated quickly, with the advance-decline line recovering from lows and breaking out of technical downtrends from April 2015 highs. Meanwhile, the percentage of stocks trading above their 10- and 50-day moving averages has also rebounded in spectacular fashion, as might be expected.
However, one area that has not rebounded as much as one would expect is the high-yield bond market...