Firm's S&P note

This week’s trading on the S&P 500 should tell us a lot about the market. The questions likely answered this week are the following: Is this just a pause that refreshes and prices work higher or are we entering into a corrective phase commensurate with the typical seasonal summer weakness ?

As seen in the attached note the market is equally conflicted with this idea as well as the S&P 500 has been fairly directionless since early May oscillating a few percentage points above and below the 920 level. To gain some direction (up or down) the index needs to either break above 923 or below 875 (key intermediate term support).
Sentiment remains the markets friend as most sentiment measures suggest that investors have not endorsed the current rally.




posted by Peter Greene