Charting the S&P 500: June Is Looking Like a Winning Month
Here's how the index stacks up after the shortened trading week.
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It was a short trading week but not much different than prior weeks, as it relates to the results. Yet, there was a lack of complete participation on some days.
Let's examine what happened on Thursday, where we saw the Industrials rocketing higher but leaving the other indexes behind. On Monday it was the S&P 500 and Nasdaq bursting out of the gate to the upside yet the Industrials and small-caps had either negligible gains or slight losses.
We have been talking about these divergences for a few weeks now, and eventually they will matter. Remember, divergences are simply signals or signposts to pay attention to, not necessarily act upon. It is for this reason we simply cannot declare uptrends, downtrends, bull/bear markets or corrections need to begin at these moments. They happen when they happen — we simply need to be ready to act when a change in trend is established.
Not much changed on our weekly chart. Another higher high, higher low in the top pane as the price action moves up towards the top end of the widening channel. Indicators remain bullish, so the market can work to overcome any negative action (like Friday).
