S&P 500 Index Trading Outlook (1-2 Days): BULLISH
No change here. The move in Technology is getting stretched, but Consumer Discretionary has pushed higher to add to leadership.
Industrials and Financials remain largely absent thus far, however. This is a nagging concern.
In all, I am expecting a bit more strength this week, though evidence of a negative momentum divergence is growing. Any move down under 2740 is problematic for the near-term bullish case. But until then, the bulls are still in control.
In the S&P 500 Futures chart below, we can see that the index has continued to press higher and is structurally more bullish than a week ago.
That said, momentum has diverged a bit, so it’s important to watch if this were to turn back down and break the trend from 5/29 lows. Currently that levels stands at 2737 or so. On the upside 2756, then 2762 look important today.
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Author has positions in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
