The hallmark of this bull market has been rotation and for this rally to continue we could see more of that next week. V shaped rally and the most recent shallow pull-back hints the market has more upside to come. While beginning of September is strong, seasonality tapers off into mid September where crash articles often appear; however, recent years September had acted reasonably positive
Another narrow range day with low volume. Although it was a red day the losses were modest.
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One interesting aspect of Tuesday’s action is the SPY gapped up above Monday’s close, and never filled that gap. This made the 2nd day in a row with an unfilled up gap. The study below is one I’ve shown before in the subscriber letter. It examined other times SPY left 2 unfilled up gaps and closed at a 50-day high. All stats are updated. Read the rest of this entry »
Fed Chief’s Janet Yellen’s speech at Jackson Hole was well anticipated and the indices barely moved on the news of how the labor market is influencing potential interest rate hikes. The market had a minor “sell the news” reaction to the speech as it was technically ripe for some profit-taking. Further weakness next week to continue to cool off the overbought technical indicators are expected. SPX 2000 round number continues to provide resistance, but for how long?