Inching up

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,

By Dan

Author of LunaticTrader and Reversal Levels method. Stock market forecasts based on proprietary indicators, seasonal patterns and moon cycles.

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