Great breadth expansion to mark a very good July Array ( [cookie] => 9df37c-433016-11733a-17f6a2-ccbd4d [current_usage] => 2 [max_usage] => 2 [current_usage_crypto] => 2 [max_usage_crypto] => 2 [lock] => 1 [message] => [error] => [active_member] => 0 [subscriber] => 0 [role] => [visitor_id] => 106570 [user_id] => [reason] => [method] => ) 1 and can accesss
The S&P was up ~9% for the month of July, representing its best month of gains in two years, and the best July performance since 1939. Just since mid-June when $SPX bottomed, we’ve seen 12% gains in six weeks, or over 2% gains a week. Not a bad recovery thus far to say the least. Yet, prices won’t likely go up in a straight line as quickly as what’s been seen since June. Breadth has expanded rapidly in recent weeks, and this widespread participation is certainly a welcome development, aiding weekly momentum in turning back positive using common indicators like MACD. Overall, my thinking is different on a two-month basis than two-week at this point. As August gets underway, I anticipate some backing and filling to this recent surge. However, gains have proven strong enough, particularly in the all-important Technology Sector, that further strength is possible into mid-September. This acceleration should prove particularly strong in the back half of August.
For now, prices are right below important resistance from prior Feb/March lows as well as early June highs which could serve to cause a stall out/minor reversal. Yet, pullbacks might not get under 3850. Thus, it looks right to buy all dips.
1-month Performance data shows why its right to be positive


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