Round Numbers

posted Jul 7, 2014, 10:50 AM by Katie Shook

July 7, 2014

Hope everyone enjoyed a fantastic holiday weekend.  The markets certainly enjoyed a short holiday week.  The all-time highs in the DOW and S&P echoed that.

The markets will likely be watching the language out of the FOMC report release on Wednesday looking for interest rate cues.  We could see a bit of a sideways grind while that takes place.  Otherwise, look for the big round numbers to get challenged again.  The DOW took out 17,000.  The S&P is eyeing the 2000 level.

Despite the verbal indications folks are uncomfortable with this market, the actions speak louder than words.  The VIX remains low, borrowing money is cheap, and stock market keeps climbing.  The RADAR system generated a new buy on the NASDAQ this week.  In fact, over 58% of the database now has buy signals (with 75% of the database being either a buy or wait signal).  Despite what the pundits may say, the technical signals under this market continue to show pretty good strength.

This week may give us a bit of a breather as we digest info and take some profits after last week.  If the S&P500 falls below 1972 then we can talk.  Otherwise, I’d key an eye on a general move higher…

Daily Digits

Daily Digits 7-7-14

 

Weekly Estimated Range

Weeklies 7-7-14

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