Karpel’s Corner: S&P’s record-breaker, Gold’s upside, and keeping an eye on Small Caps

Welcome to Karpel’s Corner. This is where I throw out my thoughts on the markets and share some of my favorite strategies. I keep it market-focused, and  never miss an opportunity to teach trading strategies and commentate on the latest trends affecting the financial markets. Hope you enjoy today’s post!

S&P’s record-breaker, Gold’s upside, and keeping an eye on Small Caps 

Well, you think you have seen it all in your trading career! But, today, we saw that the S&Ps held above the 200 simple moving average for a record 81 sessions!

This could be the cherry on top that the bears are looking for — especiallysince the market rejected at new highs into midday and continued the bearish action to the close. Now, bears out there, you need to hold your horses until we see a test of 1900. The bulls are still in control.

I also am keeping an eye on the Small Caps ($RUT). This looks to have potentiallystarted to complete the right shoulder of a bearish head-and-shoulders pattern. This is potentially negative for small U.S. domestic stocks. This has been slow to form, so there is not a red flag out yet. But it has influenced our positioning going into July expiration cycle.

Finally, gold bugs out there who are bulls: $GLD, $GDX —  the upside seems to have finally gained some momentum that could continue. This is the same levels where Gold and Gold miners broke out and ran in January.

That`s it for the Corner this week. Talk to you next week which, by the way, is June expiration week.

Have a great weekend! See you next time at Karpel’s Corner!