Technical Outlook:
- SPX continued its epic rally yesterday, adding another 1.4% to its 3-day tally.
- The last time the market was down 4% on the month with less than a week of trading left, only to rally back into the positive to close the month out was in 1938. Yes, the move from this week was historical.
- Expect volume to lighten up quite a bit as go into a holiday weekend. Monday the market is closed.
- July 1st, historically, is considered the most bullish trading day of the year. Up 22 of the last 26 years.
- Strong move today, similar to what we have seen over the past three days could put us back above the pre-Brexit highs just one week later. Also, it could put the market in a place to challenge its all-time highs.
- 50-day moving average and 20-day moving averages were both reclaimed. At this point, SPX is trading back above all of its major moving averages.
- All of the “FANG” stocks noticeably under performed the market yesterday, as did Apple (AAPL).
- VIX continued to melt away, but only dropping 6.1% this time, down to 15.63. INcredible considering on Monday it was trading over 26.
- SPX 30 minute chart over the past 3 days has only seen 6 red candles. It needs to take out the 6/23 highs to establish a higher-high on the chart.
- SPY volume creeped back up yesterday, with a strong showing and well above average readings.
- Market is assuming that rate hikes are pretty much off the table for all of 2016.
- Biggest issue for the time being for the bears is that the Brexit vote to leave, may not generate a ton of additional headlines and there is no guarantee, that the politicians, who are against such a move, would even allow it to happen.
My Trades:
- Did not add any positions to the portfolio yesterday.
- Did not close out any positions in the portfolio yesterday.
- Will add 1-2 new positions to the portfolio today based on market direction.
- Currently 100% Cash
- Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone
Chart for SPX:
