We continue to see a divided market in terms of Short-term breadth indicators. The amount of advancing stocks is starting to plateau versus stocks pulling back, which is bearish. But dips are being nibbled, especially in highly desired names, on any pullback. This could explain the choppy action and why we have not slipped into bear trading mode.
The S&P 500 ($SPY) and NASDAQ ($QQQ) have bounced off support, $211 and $109 respectively. This keeps their short-term uptrend alive. Small-caps ($IWM) have bounced off of the lower trend line at $123, but continues to trade in a tightening range, $123-$125.50. The market needs the small-caps to get some upside conviction.
Bond market ($TLT) breakout held support at $122, reversing the short-term down in May. The Dollar ($UUP) continues to be on a tear to the upside, with support at $25. This strength in the Dollar ($UUP) has weighted on the Oil ($USO) markets. Resistance is firmly at $20.50 on $USO and until we start to see higher highs and higher lows in the price of $USO, this down trend has short-term strength.
Have a great trading day
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