Saturday, June 27, 2015

Easy Come, Easy Go / Little High, Little Low

The Market Trend Model (data sheet) has moved to a neutral bias as the midweek selling continued unabated through the end of the week.  Apparently the uncertainty of the ongoing Greek debt crisis (article) weighed heavy on market participants going into the weekend.  

The Russell 2000 (chart) remains near its all time highs as a stronger dollar and a weaker euro bode well for smaller domestic companies.  Both the Nasdaq (chart) and the Nasdaq-100 (chart) are on the verge of falling back into their previous trading ranges only one week after breaking out to new highs.  Still lagging behind is the S&P 500 (chart) after this index failed to hold on to its previous week's breakout.

As has been the case since February 2014, the stock market continues its herky jerky grind by moving a little higher and then a little lower ~ never really giving buyers that sustained move higher and never really allowing sellers to push the market lower into any sustained "correction".

At the moment the market is looking and feeling like it wants to prove sellers are in control.  However if past market price action is any indicator, this is about the time when the sellers simply evaporate into thin air and the market grinds higher. Remain mindful that anything can happen from one day to the next.