The Stock Market Fell On July 8, But Don’t Expect It To Last

Stocks had a pretty dull July 8. The market just fell at the open and traded sideways the rest of the day. I’m kind of happy about that, I just had a really off day. I did a series of changes to my services over the weekend, and while I got everything working at home correctly, the office was another story.

Just a reminder on July 10 I will be conducting a live webinar hosted by Interactive Brokers at 12 PM: Low Interest Rates May Push S&P 500 Into New Territory

S&P 500 (SPY)

The S&P 500 finished July 8 lower by about 50 basis points at 2,975. The 3,000 mark continues to elude investors. Is it that important that we reach 3,000? Yes and no. Psychologically it does mean something, but in reality, it is just another number.

It seems possible that the S&P 500 can continue to trade sideways through July 10. That will be the day that index either breaks higher or lower. The trend favors a break higher, pushing the index over 3,000.

Can the market continue to rally? It seems like the answer may be yes.  Only 59% of stocks are trading above their 50-day moving average. That number peaked in February at nearly 90%. We can see it has also risen at higher levels in the past.

50 day moving average

50 day moving average

Micron (MUWealth Strength IndexMU is Flat and trending Up)

Micron had a strong day despite the semis having a weak day. I’m questioning myself on this one now. I had seen plenty of evidence to support MUWealth Strength IndexMU is Flat and trending Up falling. However, MUWealth Strength IndexMU is Flat and trending Up has held very nicely around $39, and one more day of action like this will likely make me throw in the towel and chalk it up as being wrong.

Micron, mu

Micron, mu

Amazon (AMZNWealth Strength IndexAMZN is Moderately Flat and trending Down)

Amazon is one stock heading in the right direction. AMZNWealth Strength IndexAMZN is Moderately Flat and trending Down is now less than 1% away from the $1,965 target I laid out about a month ago. Why Tesla And Amazon May Rise Further. A rise above $1,965 sets up that re-test of the all-time highs.

amazon, amzn

amazon, amzn

Apple (AAPLWealth Strength IndexAAPL is Moderately Up and trending Up)

Apple fell hard today on a downgrade. But nothing changed for AAPLWealth Strength IndexAAPL is Moderately Up and trending Up technically, the uptrend to $209 is still in place. ‘

apple, aapl

apple, aapl

Alibaba (BABA)

Alibaba fell hard today, but nothing changed here either, with a strong uptrend in place, on a path to $179.

alibaba, baba

alibaba, baba

JDWealth Strength IndexJD is Extremely Flat and trending Down.com (JDWealth Strength IndexJD is Extremely Flat and trending Down)

JDWealth Strength IndexJD is Extremely Flat and trending Down.com is also still trending higher, and I continue to think JDWealth Strength IndexJD is Extremely Flat and trending Down trends towards $34.80.

jd.com, jd

jd.com, jd

Have a great afternoon

-Mike

This article first appeared on Mott Capital.

Mott Capital Management, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Past performance is not indicative of future results.

Mott Capital Management, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Past performance is not indicative of future results.

Mott Capital Management, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Past performance is not indicative of future results.