Friday, July 22, 2016
Back to the upside today as the Dow gained 53 points on light volume. The advance/declines were 2 to 1 positive. The summation index continues higher. Overbought, no overhead resistance and summer market conditions. There is no reason that we simply won't continue to move up. Plenty of time in the August option cycle to make a trade. GE was off 1/2 on the earnings and the volume was heavy. GE did finish quite above the low of the day though. The short term technical indicators have rolled over here. Gold was off around $8 on the futures as the US dollar was higher. The XAU and GDX had slight fractional losses on very light volume. A pause in the uptrend for now, which to me is a good thing looking out longer term. Mentally I'm feeling OK. No reason we can't go higher here as the earnings are beating the lowered expectations for now. We'll get the Fed next week but I don't expect any surprises. Perhaps we can make it up to 2200 on the S&P but that's just a Friday afternoon guess and a nice round number. Certainly not a lot of volume on the rise but as always, you can't argue with price. Some would say that summer is the cause for the lack of participation but that might be the excuse going up or down. I'm still going to try and wait for some kind of divergence or technical signal before attempting the next trade. There is no hurry. Europe and Asia were a bit lower overnight. I'll be checking things out over the weekend as usual. For now it's Friday afternoon in the lazy, hazy days of summer. Time for a rest.