The Powershares QQQ (QQQ) was on a TD Buy Setup @ 7 before Friday’s jobs numbers, but the rally was good enough to end Friday’s session with a bullish price flip. The inability for the Q’s to record a TD Buy Setup @ 9 suggests market indecision. The Nasdaq Composite (COMP) recorded two of three bars closing under the 6121.29 TD Support level before price flipping bullish. This also aligns with the Q’s supporting a directionless market.
Projecting forward for all indices, but using the Nasdaq and the S&P 500 (SPX) as prime examples, weekly charts are at price exhaustion levels. Strong rallies should be capped. From daily charts, all the TDST Support levels have been challenged, but there has been no selling follow through. Everything continues to suggest range bound trading. However, directional bias is not static as volatility could come this week. There are hosts of potential catalysts with the beginning of earnings season and Janet Yellen’s testimonies to the House and Senate.
S&P 500 (SPX) SHORT/INTERMEDIATE TERM OUTLOOK: NEUTRAL
Neutral until further notice
S&P 500 (SPX) INTERMEDIATE/LONG TERM OUTLOOK: BEARISH
Neutral if weekly SPX closes above 2433.15 on Friday, July 14, 2017
S&P 500 (SPX) LONG TERM OUTLOOK: BULLISH
Neutral if monthly SPX closes below 2362.72 on Monday, July 31, 2017