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The S&P 500 Index rose during the week as we found the recent consolidation to continue the action higher. We have essentially retested the 1425 level for support after it was resistance back in April, and now it looks like the market is trying to grind higher. However, we have seen quite a bit of works pressure and it may need to take a rest.
Looking forward, we think this market eventually goes higher. This is especially true when you consider that the Federal Reserve continues to have a very loose monetary policy. Institutional money will continue to flow into the S&P 500, and as such this market will rise simply because there's nothing else for us to do. We are buying the ETF SPY as a core position, and buying financial stocks that show support after dips. We are not interested in being short of the market at this moment in time.