• The Bulls Defend Their Turf, Now What?

    by  • June 7, 2013 10:55 am • Broad Market Analysis, Quick Hits • 0 Comments

    The June chopfest continues.  Getting right to it, the SPX found support right at the critical 1,600 area.  This is both a lower trendline and 50-day moving average.  Tough to get very bearish until this area is broken.  I mentioned this area as a logical area for a pullback when the SPX was above 1,640.  Played out nicely.  Now what?

    My feeling is we continue to have a choppy June.  I’ve seen a lot of talk about how June will be this big sell-off – known as the “June Swoon”.  I don’t think so.  My thinking is volatility is definitely coming back and when we look up we’ll have gone virtually no where, yet had a lot of movement.  I discussed some of my thoughts on June with MarketWatch radio earlier this week.  You can take a listen here.

    The other big area is the 1,000 region on the Russell 2000 (RUT).  This is a huge area and one that won’t go down without a fight.  Until either this is taken out to the upside, or the 1,600 level on the SPX is broken to the downside – I find it tough to be extremely bullish or bearish here.  Have some patience and good luck trading.

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