It's Friday June 3rd and just a few hours before the opening bell S&P500 futures have held yesterdays break of 2100. The market has done it in a rather boring fashion.
The $SPY has broken above trendline resistance.
$QQQ has broken out of its downtrend and negated the looming head and shoulders pattern
$IWM is in the midst of an explosive move after breaking out of a downtrend from record highs.
the previous two June's the VIX has remained subdued.
and finally the key 2100 level for S&P500 futures has been broken above.
2100 was a key level from which the market collapsed last August. Since then it has failed in each of its attempts to recover and hold that level. To have broken and held above 2100 is a promising sign for stock market longs. It has been less than 24 hours above 2100, price action could change today, but for now, if prices can remain above this key level, it will turn from a point of resistance to a point of strong support.
Rate hike or not this month by the FED, the market has had plenty of time to digest the possible outcomes - and in just a few days the ECB is going to press the buy button on Corporate Bonds.
We could see the market drift higher into the FED and from there? New record highs? Would it not put a stamp of approval on the 'non-standard' as Draghi put it yesterday, Monetary Policy by the FED, if another rate hike announcement is greeted by a buying frenzy in the stock market.
Higher rates down the road will make the massive debt bubble un-serviceable... but we can deal with that down the road. For now the market looks poised for more of the same.
As for today's session. "Where's the Dip?"
After two gap and buys, the market is flat heading into today's open.
Prices could come back to test that 2100 level early before doing more of the same into the afternoon.
Have a great trading day - see you in the chatroom.