Stocks May Be Getting Ready To Take Their Next Leg Higher

Boring, perhaps. Frustrating, yes. It was a frustrating day. There were a bunch of the indexes just stuck in the mud. Maybe the buyers are tired, or perhaps they are thinning out. Whatever the case, the sellers seemed to be able to keep a lid on things holding key level across many indexes.

S&P 500 (SPX)

The S&P 500 was one of those indexes just hanging around resistance in the 2,880 to 2,885 zone on June 12, not able to crack 2880. I think I redrew the chart about five times throughout the day. Each time in search of the trend. Right now, it is pretty simple because that trend is lower.

I have settled on this trading channel. It could be the start of a bull flag, maybe. It’d be great if it were, it would mean the S&P 500 is on pace to rise to 3,040. As of right now, it may only be wishful thinking.

However, if it is the case that it is a bull flag forming there are signs that it could break out tomorrow, based on the Russell chart below.

(Click on image to enlarge)

spx, s&p 500 6/12/19


We can see there is a very similar pattern that as formed in the Nasdaq.

(Click on image to enlarge)

nasdaq, june 12

Semis (SMH)

I think the Semis may be secretly sending us a black swan message. Like the bond markets two weeks ago that was sending the smoke signal of an imminent recession. What do you think? LOL. Oh, I crack myself up sometimes. Get it.

Well, maybe it looks more like a bird or duck then a swan. Anyway. I’m still laughing. Hey, you have to fun if you expect to have any longevity in this business.

(Click on image to enlarge)


The Russell got held up on June 12 at 1521, and this index has to break out. You can see the setup —

uptrend+breaking of downtrend = breakout above 1,521.

Let us hope it does on June 13.

(Click on image to enlarge)

russell, rut

Apple (AAPL)

Apple is trying to break out at $195, and there is a good chance that happens tomorrow if we can get that break out on the indexes. Or better yet, maybe AAPL leads that breakout! Now that’s a thought!

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Disclosure: Michael Kramer and the clients of Mott Capital own AAPL and TSLA. Michael Kramer owns SMH Calls.

Disclaimer: This article is my opinion and expresses my views. Those views can change ...

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