The S&P 500 has rallied over 70 points in the past 5 trading days. My prediction that the market bottomed on June 16th proved to be on the money. My subsequent suggestion that the market was set to rally within the next week took a couple of extra days to play out, but nonetheless has done so. Last week the S&P 500 saw gains every trading day of at least 0.75%. Its only the 8th time in the index's history that this has happened. I remain long the market, but I will be looking to take more profits given the recent run-up.
My overall outlook remains bullish. I continue to expect new highs this year, however, we could see some choppy action over the course of July. I don't expect the market to continue straight up. For that reason, I will consider closing out my swing position soon and adapt a strategy that will take advantage of a range-bound and/or choppy type market action. That being said, I continue to be long the e-mini S&P 500 Futures (ES).
Today I wouldn't be surprised to see limited consolidation action following the big move last week. We are approaching solid resistance overhead and I don't expect the market to ignore it...
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