The Gilmo Report

July 12, 2017

July 12, 2017

Those who love to ride rollercoasters will find much to like about this market, but the unwary might have been shaken out by yesterday’s big sudden intraday sell-off. This occurred after news of Donald Trump Jr. releasing the email chain he exchanged with a Russian attorney with no ties to the Russian Government was released.

Once the news algos, algos that are allegedly programmed to read news and react accordingly, were done selling, the indexes found their feet and simply turned back to the upside. By the close, all the major indexes finished more or less flat, with the NASDAQ Composite Index holding critical near-term support at its 50-day moving average.

This morning the indexes gapped higher ahead of Fed Chair Janet Yellen’s testimony before Congress, and the rally held up into the close. This brought the NASDAQ right up into the declining tops trendline I’ve drawn on the daily chart, below, on higher volume. A nice move, albeit into potential resistance, but which could also be setting up a declining tops trendline breakout as well.



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