Our breadth indicators turned positive on June 27th and the market has seen a strong rally since. At this point we would like to see a pullback and test of the 50 dma on SPX. A pullback would offer some good opportunities for entries on the leaders that took off on the 27th and never looked back. Keep an eye on high earnings performers with a daily volume greater than 500k within 10% of their highs for entries.
We will bump into resistance at 1345 on the SPX, let’s see if we can hold our ground once this level is reached.
Have a great 4th of July.