Will The Next Leg Higher Start on July 12?
S&P 500 (SPY)
It was an up day on July 11, with the market pushing higher into the close to finish near the highs. The S&P 500 managed to finish the day right around 2,999.91. There is an interesting ascending triangle pattern that has formed in the index. It would indicate that the S&P 500 is going to make a push to around 3,050. I’m expecting it to be the last leg higher over the short-term. I’m not going to get into the reason why at this point, because I’m still watching the developments. However, I did present the concept in a premium video today. Is An Equity Market Storm Brewing?
The push higher should start tomorrow July 12, to close the week out.
Don’t get confused by my message. I’m not making some doom and gloom end of the world call here. I still think the S&P 500 continues to push higher longer-term. However, we have risen by about 10% since the beginning of June and a pullback to say 2915 wouldn’t be earth-shaking, now would it?
One day at a time, let’s start with July 12 and see if I get that part right.
Nvidia had a great day rising by $6 on an upgrade by Cascend. NVDAWealth Strength IndexNVDA is Extremely Up and trending Up appears to be back on track on a path to $179.
I have been tracking Dell for some time, and the chart is finally starting to look better. There appears to be a clear level of support around $50.50. You can see the stock is beginning to turn higher and the RSI is moving up too. I could see a move back to $60. I noted this one a few weeks in a premium article.
Cisco is flirting with a break out once again. Maybe this time it can happen and finally push to $61.
Disney has been flirting with a breakout, and it seems to have finally accomplished it. How much higher does it go? I still think $175 is possible.
Have you noticed any trends lately? I have Netflix, Disney, Cisco, and Acadia all on the cusps of breakouts. Do you know what they have all have in common? I own them. It is torture to watch day in and day out for weeks on end to see your stocks near break out but for it to never happen. At the same time, it makes me wonder why, and if there is something the market knows that I don’t !
Eli Lilly (LLY)
The pharmaceutical stocks got crushed today, as investors worry about what Trump’s next option to bring down drug prices. Eli Lilly looks to be the worst positioned from a technical standpoint. The stock could be heading to $104.50.
Maybe it’s too early, but this year is beginning to look like a repeat of 2015 and 2016 for the drug stocks, and that isn’t good if that is the case. We’ll have to see how things go.
On to greener pastures tomorrow. I don’t know where that came from, it just randomly popped into my head.
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