SPY and SPX Trading at Resistance While Companies Announce Sales and Earnings Beating Expectations
Its hard to get bearish with SPY and SPX at double top resistance. Earnings and sales continue to beat expectations, with nearly all S&P 500 companies reporting earnings. Guidance is predominantly bullish.
SPY strung together 5 weeks higher, and had it not been for a brief dip on Turkey “news”, the ETF would have completed the best run since the end of 2017. In addition, momentum is with the bulls with MACD/PMO rising.
Volume has been stealthy.
SPY NYSE and TICK Cumulative
TICK cumulative is rising indicating institutions are buying more stock on the up-tick compared to what they are selling on a downtick. This indicator is trending bullish.
NYHL New Highs vs. New Lows
New highs spiked yesterday, eclipsing the start of July, one of the more seasonally bullish months of the year. August in contrast is typically the weakest month for seasonality. Sales and earnings once are propelling stocks to new 52-week highs.
Advancing stocks are beating declining stocks, yet another reason for the bears to hybernate.
Futures are green in pre-market trading. U.S. Dollar is lower.
As a reminder I will be out half a day. I will be picking up my family from JFK airport this afternoon.
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