The S&P 500 reached new record highs last week, the Nasdaq is coming very close to a new all time highs as well. Some consolidation after the recent rally is normal, and we are in a new lunar red period. A further rise in June is likely if the market doesn’t give back too much of its gains in the coming weeks.
Let’s have a look at the S&P 500 chart (click image to enlarge it):
My indicators are still fairly neutral with the Earl turning down slightly and the slower Earl2 going up after printing a very shallow bottom. Next resistance is near the 2200 level, but a drop back below 2100 would make last week’s highs look like a failed breakout. This can go either way, but it remains a market that is inching higher until proven otherwise. This is the kind of situation that demands patience and “go along with what comes along”.
Happy trading,
Danny
LunaticTrader Blog 