I hope you’ve all had a good week!
As we enter the second half of the year, the first six months have proven to be favourable to equity investors. Despite the lingering uncertainty in the world at the turn of the new year, the S&P 500 has delivered its best 1H performance this side of the new millennium. Having gained around 14.5% year-to-date, 2021 looks set to sustain the double-digit performance that investors have become accustomed to in the era of central bank stimulus.
The S&P 500 is registering its seventh consecutive record high today as it looks to round off the week in favour of the longs. I for one am very pleased with this, as my personal portfolio remains fully invested in mostly US equities.
Looking at the technical analysis in slightly more detail, we can see how the market is now breaching the ‘overbought’ level above 70 on the daily RSI, and may also see some short-term profit taking around the Fibonacci extension level at 4354 (a mere 11 points above current levels).
In order to determine whether this could provide a potential short setup, or opportunity for longs to add to positions on any near-term correction, we should refer to our process. Trading Club members may now access our latest monthly Checklist Report which has just been updated for July, and provide our score for the US stock market along with many others. Without being able to reveal the scores here just yet, it is worth considering the successive positive scores that we have seen in our Equity Market and Business Cycle Checklists in recent months (there is a BIG surprise in the latter, too, which I discussed with Club members in this week’s video analysis..).
I will of course provide more on this next week, but for now, it’s a Trading Club exclusive. To learn more about our methods, and join me for more analysis in real-time, check out our MDT course and Trading Club pages where you can preview everything that we cover.
Have a great weekend,
Disclaimer: For educational purposes only. Even though we do our best to provide reliable data, you should not trade based on this information.
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