We failed to re-take the 50 dmas on the Dow (15,041), the S&P (1,621), the Nasdaq (3,404) and the NYSE (9,298). The Russell did pop 970 and went on to an impressive finish at 977 and, this morning, is back at 980 in the Futures (/TF) and once again our leading index. The Russell had intra-day highs 1,008 in late May and 1,001 in mid-June and both the 50 and 200 dmas have made 20 points of progress since then so it should, in theory, be EASIER for them to get over 1,000 this time – if the rally is real.
We're sure not going to know if things are real or not this week as it's the July 4th holiday in the US and, traditionally, the 2nd lightest trading week of the year, behind Thanksgiving, which is essentially a 3-day week. This week, we're closing early on Wednesday (1pm) and will be completely closed on Thursday and good luck getting traders back to their desks on Friday!
So, the question is, do they have the balls (beach, that is) to go away for the long weekend with long positions or are we going to see a lot of selling pressure this week as Fund managers exercise caution and get back to cash?
Our Futures are pumped up about half a point this morning but that's off the highs and, of course, proves nothing as it's the Futures and, often as not, is just a head-fake to cover the pros as they head for the exits while calling the retailers in to hold their bags.
