The SPX has been in a 50pt channel between 1490 and 1550 for just over 2 months now. The price is trying to hang on to the green upward trendline, and despite the strength in the Tech Sector that's help fuel the Nasdaq, the broad market S&P 500 Index just hasn't seen the same optimism. If we're looking for gauge of the overall markets, this is the best index to look at, and the price action to this point continues to show consolidation in this range. Of note is a possible double top on the Daily Chart which to this point has seemed to fail. The one caveat to it's potential failure is that it was done on a holiday week in the summer with VERY light volume. Friday will likely have very light volume again as we go into the weekend so we'll see what news comes out Friday AM to either ignite the market to new highs or punch it another leg down... the 3 possibility is some boring chop sideways.
Earnings announcements start on Monday with Alcoa (AA) so keep your ears open for any earnings "warnings" as that may start to paint the real sentiment for the summer market direction. Although it doesn't seem plausable, I wouldn't be a bit surprised if everyone had great earnings and the market goes on another tear higher. Nothing surprises me anymore and it shouldn't surprise you either. Remember that the market is very good at disappointing those who try to trade based on logic.
SPX 1 yr / Daily Chart
Posts
No comments:
Post a Comment