The major indexes have struggled to make further upside progress after clearing to new highs last week. As I wrote on Wednesday, I believe that the fat part of the index rally in terms of catching high time-value trades on U&R long set-ups has passed, and that this sets the stage for a possible market pullback. The optimal point at which we saw these U&R set-ups materialize occurred at the point of impact when the NASDAQ Composite Index bounced off its 50-dma in late June.
After breaking out to an all-time high on Tuesday, the NASDAQ has stalled and churned over the past three days with volume picking up relative to Tuesday’s new-high breakout day. So far, the new high has produced nothing in the way of significant upside follow-through. This is why the action feels a bit sluggish to me. To some extent, the index may be on hold as it awaits earnings reports from several big-stock tech names this coming week, including Amazon.com (AMZN), Facebook (FB), and Alphabet (GOOGL).
The rest of this report is available for Gilmo Report Members only.The full report will be available 45 days after it is posted. For immediate access: login
Gil Morales & Company, LLC (“GMC”), 8033 Sunset Boulevard, Suite 830, Los Angeles, California, 90046. GMC is a Registered Investment Adviser. This information is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to GMC, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Gil Morales & Company, LLC. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2008-2018 Gil Morales & Company, LLC. All rights reserved.