Firm's S&P morning note

The S&P 500 bounced from aggressively from the lower support area we highlighted in yesterday's S&P 500 note. We still believe the summer will be choppy and we could remain range bound for quite a bit of time. It is also possible we could see some semblance of a retest later this summer or as we approach the fall.That said yesterday's bounce had some vigor to it particularly on the NYSE where up volume beat down volume by a ratio of 10:1 and advancers bested decliners by a 4.5:1 margin.The NASDAQ was close to the task on the up to down volume camp with a 6.45 to 1 ratio, however it has less participation than the NYSE with only 2.7 stocks advancing for every one that declined. While these internals may suggest we can push a bit higher up into the range, we think given seasonal summer weakness the tape won't reward those with multi-month holding periods like it did from March to June, but will favor active trading.As long as the S&P 500 stays above Friday's lows the market still gets the benefit of the doubt.
Best.


posted by Peter Greene