The third week of June saw stocks open with a drop below the important 2075 support level on the SPX Index. This was the second time in two weeks that the 2075 level was tested and while I expected the S&P would break lower following the second test of the 2075 level, investors decided to do the opposite and they bought the drop on Monday morning. This lead to a rally which on Wednesday got a boost from the Fed dovish comments on holding zero interest rates for probably over the summer months and then revisiting the question in September. For much of Wednesday afternoon this left investors undecided whether they liked Fed Chair Yellen’s comments or not.
On Thursday investors voted overwhelmingly in favor of her comments as they sent stocks roaring higher all day. Friday saw a slip though but I still believe it is more profit-taking than anything else.
S&P chart Since January 2015
The S&P chart below since January 2015 shows that while stocks may feel like they are going nowhere, there are actually slowly climbing. It has been a grinding climb to be sure, but a climb nonetheless. The important 2075 level shows that since April stocks have been unable to stay below it. This has created a fairly strong support level for stocks.
Since March 18 momentum has been poor as trading volume continues to decline but in general momentum though poor, has been largely positive for stocks. On Friday despite the selling, momentum still held a positive bias..
The Past Week’s Action and Trade Ideas
The rest of The Week Ahead strategy article is for FullyInformed USA Members as I look at the past week, the outlook for the upcoming week and some trade ideas that I will be considering this week.,
Investing Strategy Notes And Trade Strategies for The Week Ahead – Fourth Week Of June 2015
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Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations. Everything presented and discussed are the author’s own trade ideas and opinions which the author may or may not enter into. The author assumes no liability for topics, ideas, errors, omissions, content and external links and trades done or not done. The author may or may not enter the trades mentioned. Some positions in mentioned stocks may already be held or are being adjusted.
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