Market digests gains
As the summer comes the stock market slows down. Today was a resting day. The market digested gains from Friday and what seemed like a volatile week.
The stocks sold off and finally reversed on Thurday but didnot go much higher waiting for the unemployment report which came in at 175,000 jobs added, that was not so good news but it was half decent . This wasn’t a blow out number that would have given traders to be euphoric about the economy. The same pattern in May repeated in June. Lets see if we go much higher and clock gains everyday in the trenches.
The reversal on Thursday was a classical. After traveling in a downward channel the SPX crashed through the 50 day MA and reversed immediately, as buyers stepped in with orders ready in hand. This was a no brainer move, everyone knew and expected about it. The buyers sat around the sidelines till SPX hit the 50 day line and boom it went up forming a strong reversal candle. Fridays’s half decent job numbers also gave it nice follow up boost.
GOOG bottomed out here and now has reversed aiming at newer highs. This was a neat little channel in the making, a bullish channel which we talked about in previous videos. The stock is showing vigor and strength.
AMZN also showed some wings and flew to the higher end of its consolidation range. AAPL meanwhile languished unable to propel higher in all of this excitement. Today saw the WWDC conference and that didn’t impress the traders, as they didn’t see much in it, and the stock stayed dormant. We shall see how it behaves in next few sessions.