• market back to 2100

Technical Outlook:

  • SPX continued its epic rally yesterday, adding another 1.4% to its 3-day tally. market back to 2100
  • 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:

SP 500 Market Analysis 7-1-16

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