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.
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.
Facebook got close to retesting the previous lows and has held, with a meaningful bounce. That is a positive.
Netflix too, and Google still holds $1000.
XLY can’t get over 99.5 though, and the trend is still lower.
The technology ETF doesn’t look particularly healthy. It can’t afford to fall below yesterday’s lows.
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!
Michael Kramer and the clients of Mott Capital own NFLX, GOOGL
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