• 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.


    Ryan Detrick is the Senior Technical Strategist at Schaeffer's Investment Research in Cincinnati, Ohio. He joined Schaeffer’s in 2003 and is a frequent speaker and writer on stock market and economic issues and is widely sought after by financial media for his expertise and commentary. Mr. Detrick is a common guest on CNBC, Fox Business, and Bloomberg Television and has been quoted in outlets such as The Wall Street Journal, BusinessWeek, USA Today, Reuters, the Associated Press, and others. With a decade of financial industry experience in the investment and financial services area, strengths include short-term trading with an eye toward timely technical- and sentiment-based trading opportunities, and advanced option trading strategies. Mr. Detrick received a BA in finance from Xavier University, an MBA in finance from Miami University, and has earned his Chartered Market Technician (CMT).


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