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Stock Market Rally Fails To Impress

Stock Market Rally Fails To Impress – Midday Commentary

For now, the rally doesn’t seem overly impressive, and it even appears we are hitting a wall of resistance around 2,600 on the S&P 500, and that continues to be a concern.

S&P 500

The VIX to me is the most important chart to watch; we continue to stay below 25, still a mystery to me, as to why. But I’m beginning to understand why this lack of fear may be happening. More tonight on that.

vix

Facebook got close to retesting the previous lows and has held, with a meaningful bounce. That is a positive.

facebookNetflix too, and Google still holds $1000.

netflix

XLY can’t get over 99.5 though, and the trend is still lower.

xly

The technology ETF doesn’t look particularly healthy.  It can’t afford to fall below yesterday’s lows.

technology

For this rally to have any legs the rest of the day, I think we need to see the S&P rise above 2610, and the XLY get over $99.40.

Hope this helps!

Until Later

-Mike

Michael Kramer and the clients of Mott Capital own NFLX, GOOGL

Photo credit via Flickr

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