The S&P 500 has been sideways for the month of June, and that tracks fairly well with most expectations because, quite frankly, we have a lot of different things going on. But the first thing you would think about would be the seasonality.
Typically, in the summertime, you start to see markets slow down a bit, so we are in that common theme. But it's also worth noting that we went straight up in the air for a couple of months, so a little sideways action does make sense; after all, markets can't go in one direction forever, so it's not surprising to see we are working off froth. The move higher was pretty strong, so a rest was probably what most traders preferred.
Trend Continuity and Technical Targets
I think we will probably continue a little bit of this in July, but ultimately, I remain bullish of the stock market because, quite frankly, we're in an uptrend. The month of July could see sideways action, or it could see a little bit of a deeper correction towards the 7,000 level. But for me, at least with the information that I have at this point, I think 7,000 is a fair estimate of where the actual floor in the market is.
Top Regulated Brokers
To the upside, if we were to break above the 7,600 level, I think that opens up a move towards the 8,000 level, and let's not be overly surprised if that happens. This is a market that does tend to be impulsive at times, although when you look at the longer-term uptrend, it has been more of a grind most of the time.
Concerns in the Middle East seem to be going by the wayside, and that, of course, helps the entire situation. So, if that's going to be the case, then I'm interested in going long here on dips. I think ultimately the overall trend wins out, and we just continue to the upside before it's all said and done.
Ready to trade our monthly forecast? Here’s a list of some of the best stocks brokers for you to check out.