For all intents and purposes, the market should be down this week from both a technical and fundamental perspective.
Let's start with technical first. Zenolytics has been laser focused on the 2910 level since this rally started. The high for this week on the S&P 500 was 2910, a level that initially looked as though it would stir up some financial horror stories, at least for a few days.
The fundamental picture should have only added a shot of steroids to the bearish case. Just last night, Broadcom basically came out and said they are giving up on the second half of the year.
And then we have what looks like war drums beating in the Persian Gulf, with an eye on Iran this time around. Even gold is catching onto how dangerous things are geopolitically, as the safe haven metal is making new highs this week.
Yet here we are. It's Friday and the S&P has essentially gone sideways this week, in what is certainly a resounding win for the bulls. Bear should have been able to cause something along the lines of a 1% decline this week.
Flaccidity seems to be running rampant in fur ball camp since early June.
All of these failures by the bearish camp in the face of just a few of the many negative tailwinds this week are whispering valuable pieces of data to investors who choose to listen.
The markets are much stronger than most of us think, reinforced by ultra-low interest rates and bearish sentiment that is filling the stadium well beyond capacity.
At the very least we have a test of 2910 coming on the S&P next week. Depending on the reaction to that level, Zenolytics can accurately gauge what remains in store for June.
Stay tuned.
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