A Glass Half Full Or Glass Half Empty – The Fate Of The Stock Market

Looking For A Sign

The past few weeks have been incredibly trying. You can look at the glass as half full and half empty, and in both cases, an observer could find plenty to support either view.

An observer of a glass half full could argue that despite all the negative headlines the market has held steady, and has remained resilence. An observer that sees a glass half empty could point to the index’s inability to rise above 2935 on multiple occasions.

The part that is so difficult to grasp is what happens next. Generally speaking, I have a good sense of direction when it comes to the broader market. But lately, I feel I have lost my way. I can not determine the movement in the market, and that makes me incredibly uneasy. Why does it make anxious? Because I know the next move in the market will be a move that sends it sharply higher or lower.

So patiently I resign myself to the fact, that looking for clues and subtleties are not easy to find. However, when looking abroad instead of finding markets that are breaking down, I’m finding markets that appear to be improving. It leaves me feeling cautiously optimistic that the summer doldrum will pass and a period of higher prices await. However, we need to remain patient for the markets next signal.

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S&P 500, kospi

S&P 500 (SPX)

The three-ring circus continues with the S&P 500 on September 3 refilling a gap from last week. If the current pattern holds, and the trend continues to rise, then an ascending triangle is forming, which leads us to the big break out at 2935. However, if the trend doesn’t hold, and the index breaks the uptrend, then the index will fall and retest 2825.

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S&P 500, spy

GE (GE)

When you are off, your off. Even with the markets sharp decline, GE still managed advance. Unreal. The last line of defense until an increase to $8.80 is around $8.40.  GE’s Declines May Only Be Starting

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Disclosure: Michael Kramer and the clients of Mott Capital own MSFT.

Disclaimer: This article is my opinion and expresses my views. Those views can change at a moment's notice when the market ...

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