Tuesday, July 14, 2015

Market Recap – 7/14/2015

The market finished up today, making it four consecutive up days. The DJIA closed above the 50 SMA and passed the Fib retracement zone. It could be encountering resistance from the near term declining trendline. If it breaks above this trendline, then the next probable resistance is the 6/23/15 close at 18.144.07. The SP500 also closed with four consecutive up days and it is above the 50 SMA. The next level of potential resistance could be the 3/2/15 close at 2117.39. The NASDAQ 100, NDX is getting near its multi-year closing high made on 5/27/15 at 4546.06. As the recent large cap tech stocks showing signs of strength, it will not be surprising to see the NDX makes another multi-year high. The Russell 2000 also recovered from the recent pullback low and getting near the 4/15/15 close of 1275.35. Since all the indexes have been up for the last four days, the probability for a down day will increase as the market continues to move up toward its recent high. Although any new high from the market is a good thing, but if the breadth still showing weakness, then it can only set up the market for a more violent and deeper pullback. But for now, continue to monitor the market breadth for increasing strength and focus on the stocks that are showing good setup.

NYSE

(click on the chart to enlarge)


NASDAQ



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