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(6/24/17)
Next Friday will be the end of the 2nd Quarter for the
market. If the S&P 500 remains above the 2363 level, which looks
pretty likely at this point, then this will be the 7th Quarter in a row with a
positive gain. Furthermore this would make 16 out of the last 18 quarters
with a positive return as well.
Meanwhile the next area of significant resistance, in the
S&P 500, appears to be just above near the 2485 level. This level is
the 200% Extension Level calculated from the 2007 high to the 2009 low.
As the market has continued higher volatility remains near all
time lows. The VIX continues to exhibit a descending Triangle
pattern. Typically this type of pattern is followed by a significant
reversal to the upside. Thus one would expect a reversal at some
point.
Naturally if the VIX were to reverse to the upside then a
correction would follow in the S&P 500. Notice the upward trend line
(purple line) and previous resistance area (black line) reside just above the
2100 level. Thus this would be a potential target area if a correction
were to develop.
Amateur Investors
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