Technically Speaking – June

July 2, 2024

Long Term Resistance    SP500           5500-5600

Long Term Support         SP500           5350 – 5300 then 5200

The Markets keeps marching higher in the face of a challenging Global environment. Why is that? Simply put, investors don’t want to miss out when the FED begins to lower interest rates. However, they are not listening very well. The FED has said they will not lower rates until they feel inflation is under control and the job market is softening. That scenario can create euphoria at first but will lead to a market decline once investors realize the FED is lowering rates because they feel the economy is weakening. We all know Markets get overextended in both directions. Is it over bought at this time? On the surface you would say yes, but until the FED actually starts lowering rates, I believe the Markets can go higher. Between now and September I believe the Markets are poised for a rally to new highs. The SP500 may go to 5600 plus. If that happens, we will be mitigating my risk.  We believe looking to reduce risk in late August and early September will be prudent. Have a plan to cut back if we make new highs and/or get into late August. We also believe initially the buying will spread to smaller and mid-cap companies as investors take profits from Big Tech’s huge gains.