S&P 500 is above its 200-day moving average = Bullish
S&P 500 is above its 50-day moving average = Bullish
S&P 500 one-month trend: “V” Shaped Rally and Triple Top (one year) at Resistance. It could go in either direction.
RSI: (S&P 500) @67.53 = Overbought (Bearish)
MACD: Above Zero Line and above Signal Line (Bullish)
Daily Intraday Volatility: 15.40 (Subdued). Volatility is still on the low side.
Comment: As expected, Fed Chair Powell did not cut rates but gave hope to the bulls by insinuating that he might cut rates. The bulls ran with it, running the market higher on low volume. The Dow just had the best June in 80 years. Unfortunately, we are also overbought on the indexes as SPX hit resistance, creating a V-shaped rally and triple top (one year). What could possibly go wrong?
Well, a lot of things could go wrong, which is why this is going to be an interesting week. Powell speaks on Tuesday, and the Group of Seven meet on Friday and Saturday, with the highlight being the Trump-Xi meeting. There is pressure from all sides for Powell to cut rates, although he never promised anything. The algos will try to keep the markets calm but there will be a lot of cross currents, and volatility should increase (it might even explode one day). Powell has the power to disappoint the markets if he so desires, and obviously everyone will be watching the Trump-Xi meeting closely.
Bottom line: It should be a wild and unpredictable week. The market is overbought so if something goes wrong, the markets will fall swiftly. The market is at resistance so it will need a strong push to surpass the all-time highs. Get out the popcorn because we could go in either direction, and more than likely, we will!
For daily results of multiple indicators, read Yardeni Research: https://goo.gl/eT3fzA
For insightful analysis of the stock market, read Lance Roberts:www.realinvestmentadvice.com
For insightful analysis of economic conditions, read Wolf Richter:www.wolfstreet.com