Market reaches target, now what?
The Market:
A light volume start to the week and a very tight trading range with the S&P 500 cash trading in an 8 point range and even including early trading in the futures the entire day stayed within a 9.25 point range.
The following noteworthy companies are scheduled to report earnings before tomorrow’s open: CVS, S, REGN, RAI, MMC, OMC, PCG, HCP, IR, ETR, GWR
Analyst Comments:
The Game Plan:
The S&P 500 (SPY) 60 minute chart has a potential inverse Head & Shoulder pattern which counts to new highs (roughly $186 on the SPY). Considering where we were just a few days ago, thinking of a pattern to new highs is amazing. Along with that positive set-up is the McClellan Osc which has a very similar look to October 2013 when the index reached the -60 region and then turned higher ultimately making new highs.
On the negative side the MACD on the S&P 500 Daily chart appears to be lagging this recent move in the market which while impressive has only rallied from a level defined as support to a level that was highlighted as a potential target. What we will be watching is the first pullback and if that pullback is orderly and consolidates or if it takes on a more impulsive nature implying that the lagging MACD on the Daily SPX is right and there is more work to be done before we can move to higher levels.