Here is a 15 minute bar chart showing regular hours trading in the June S&P e-mini futures.
Less than an hour ago the Fed raised the funds rate by 25 basis points to 5.00%. The market broke sharply after the announcement but as you can see support at the 1320 level held. I think the next step up should reach 1334 and that the market should be trading near 1350 in a couple of weeks.
The week of June 5 is still the ideal time for a bull market top, but frankly I still don't see the optimism about the future normally associated with long lasting highs in stock prices. We'll have to wait to see whether this situation starts to change.
2 comments:
Sir, any possibility that a deeper correction can happen immediately, towards 1275 and DOW breaking 11K ........
followed by a strong rally to new highs and possibily S&P 1375-1400 TOP which can come by in JULY instead of June ?
Rhino
Dear Mr. Futia.
The recent highs of the Dow and the S&P 500 seem to have complete the advance since april, last year.
Do you have any strong reasons to believe this is not the beginning of a multi-month decline into fall?
That Lindsay's tools did not project any turn point for last week and the lack of extreme bullishness over the last few weeks, both cast doubt on the length and duration of the current downdraft.
But, in any case, what must happen in your opinion to rule out any new highs for the year? Thanks.
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