Stocks Gaining Momentum

Jul 11, 2016

Stocks Gaining Momentum

Market Update

I am emailing this week’s newsletter before the market close today, so the charts below are only updated through this morning. As I write today’s newsletter, the S&P 500 is advancing above major resistance (see chart below). This level of resistance has contained stocks for over a year and it will be positive for stocks if the S&P 500 can stay above this area.

 

sp500

Stock market internals improved this past week, after being mixed last week. Most market internals are now positive, signaling further stock market strength. Stock Market Breadth is positive.

breadth

Stock market momentum has turned positive. Below is a 21 Day Rate of Change indicator in the lower panel and the S&P 500 in the upper panel. The 21 Day Rate of Change line crossed above zero signaling a positive momentum change.

roc

The chart below shows that the VIX spent all of last week below its 50-day moving average, indicating investor complacency that has previously coincided with every near term advance in the S&P 500 in recent history.  As long as the VIX remains below its moving average, currently at 16.10, last week’s rally is likely to continue.

VIX

Current stock market conditions are such that stocks are oscillating, not trending over the long term. Because of this, conditions can change more quickly. At this point, stock market conditions are positive, but risk management is still very important especially for investors that are in or close to retirement.

The Bottom Line

Bias: Positive for Stocks

Client Update

Client accounts are fully invested. For the most part, our accounts have trended up with very minor volatility.

 

Craig Image_wires_skin40_level_grey_160pix

Craig Thompson, ChFC

www.assetsolutions.info

Email: [email protected]

Phone: 619-709-0066

About Asset Solutions

Asset Solutions Advisory Services, Inc. is a Fee-Only Registered Investment Advisor specializing in helping the needs of retirees, those nearing retirement, and other investors with similar investment goals.

We are an “active” money manager that looks to generate steady long-term returns, while protecting clients from large losses during major market corrections.

 

Subscribe To Our Newsletter

Join our mailing list to receive the latest news and updates from our team.

You have Successfully Subscribed!

Subscribe To Our Cryptocurrency Newsletter

Join our Cryptocurrency mailing list to receive the latest news and updates from our team.

You have Successfully Subscribed!