Click to enlarge
Chart

Major U.S. indices such as the S&P 500 and the NASDAQ Composite have both recently stabilized and bounced for the second time off their respective 50 day moving averages.  Though historically June tends to be a negative month for stocks, with only 9 trading days left in the quarter we wonder aloud whether quarter ending “window dressing” will keep stocks elevated until June passes.

Market internals have certainly shown some deterioration of late, however, the old adage is to respect the trend and the trend still remains up as long as the recent lows, near the respective 50 day moving averages, hold. 

Please see attached note for chart on the S&P 500 and NASDAQ Composite.

 

 

Category: Technical Analysis, Think Tank

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

5 Responses to “Equity Market Review for June 18th 2013”

  1. leopardtrader says:

    Mathematical generated “predictors” as 50MA is of little use. It could have been 55 or 40 MA. If we backtest the last 10~20 years we notice immediately how useless to rely on such media hyped mantra. I followed Barton Biggs till his death and I keep repeat -reading some of his thoughts as this http://leopardtrader.com/?page_id=1225

    Imo 1580/90 have all the support for a parabolic rally to 2500 going into 2014. I have some forecasts here http://leopardtrader.com/?page_id=210

    I am a firm believer that past does not guarantee future price/action especially in events that have enormous human participation. Rather future price is lead by value and price continually continue to chase value. It works and been a money maker

  2. PeterR says:

    NYSE “Main Engine” breadth appears to have bottomed again IMO. [charts at link above]

  3. ancientone says:

    Technical analysts are the only people I know who try to decide which way to turn by looking in the rear mirror.

  4. Disinfectant says:

    I always ask, but NEVER get an answer as to why “window dressing” would cause the market to go up. The theory is that PMs are selling underperforming stocks and buying outperforming stocks, but if they are doing so in equal dollar amounts, it is not obvious to me why this is supposed to be a net positive for the overall market capitalization.