Coming off the worst start to a year since 1962, the market bounced
back last week from its oversold condition with some help from quarterly rebalancing.
If the market can get through resistance around S&P 3900 this week this
bear market rally could continue into the first half of July.
Over the past twenty-one years, July has on average begun
with respectable gains. The second trading day has been weaker, but after this
the major indexes have tended to trend solidly higher through mid-month to
around the thirteenth trading day. At this point the major indexes have tended
to weaken and trade sideways to lower to finish out the month.
Then, just as everyone gets bullish again on the “Summer
Rally” hype, look for the perennial August/September/October weakness to strike
and reawaken the bear.
Image and article originally from jeffhirsch.tumblr.com. Read the original article here.