Here’s Why The Stock Market May Be About To Surge Higher

Stock Poised To Rise?

It was like watching paint dry on the surface with the S&P 500 finishing July 9, nearly where it started. The only good news is that after struggling most the day at 2,975, the S&P managed to break above that resistance to close at roughly 2,980.

The market feels to me like it wants to go higher. It has been consolidating sideways for about a week now. I think that the next move is higher.

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SPX, spy, s&P 500

Waiting

The market feels like it is waiting for something. What it is waiting for I don’t know. It could be any number of things; perhaps it is Jerome Powell tomorrow, t hat is when he will speak in front of the House Financial Services Committee. Will it be entertaining to watch, yes, I think it shall be. Is Powell going to say in his opening monologue that he plans to cut the Fed Funds rate by 50 bps at the July 31 meeting? Doubtful. I sense that the market will learn nothing more from Powell that it didn’t know two weeks ago.

As of right now, the “market,” based on data from the CME Group, has the odds of 2 rate cuts following the September meeting at 60%. Yes, it seems possible, but that could change following the CPI and PPI reports later this week.

Netflix (NFLX)

Netflix had a good day but fizzled by days end. NLFX keeps getting close to breaking out, and it just can’t. The RSI continues to trend higher, and I continue to believe this is a stock heading towards $400. When is the part I can’t figure out?

netflix, nflx, stock , july 9

Square (SQ)

Square had a big day and increased above resistance at $75; I think it sets up a move to $83. I wrote a commentary in the premium area today about the breakout. I now provide audio explainers to go along with the write-ups.

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Square, sq, stock july 9