It is hard to characterize this market as anything other than choppy and that is exactly what it has been so far in the month of June and the past 8 trading sessions. There is reason to believe that the market should be problematic this summer with FOMC rate increases on the table and the brexit vote on the 23rd. But so far the market is not dropping at all. Each time you think it might be changing its character, it reverses course and pushes higher. For the bears that is frustrating because early morning gains consistently evaporate away. On the bullish side, you add new positions on the dip but the following morning those profits give way to another drop.
Patience is key here, it really is. Aggressive profit taking still rules the ruse. Above 2111, the rally off of the February lows continues, and above 2116 the two year head and shoulders pattern is nullified.
Over the past week or so, the “spinning the wheels” feeling that the market has brought about has been mind numbing, and not the easiest to trade. However, if we can get some continuation to the upside this week, we are well positioned to capitalize on it.
