- Some good and some bad going on in the stock market right now.
- The general message indicators are telling us is that the stock market is a mixed bag.
- We're at an inflection point.
Today's "SoloCast" is a summary of some good... and some bad going on in the stock market right now - and the general message indicators are telling us is that the stock market is a mixed bag.
We've seen a close above the long-term 10-month moving average, which was preceded by a close above the 200-day moving average, only to experience a Deemer "Breakaway Momentum" breadth thrust on Friday. So these are all GOOD things! However, we've also officially entered a recession as of June 1st, following the longest economic expansion since World War II.
The S&P500 also closed below the 200-day moving average Thursday, which is a negative piece of evidence. Coronavirus cases are in an uptick in places like Peru, Brazil, India, and even right here in the United States.
So we're at an inflection point where either the stock market is going to consolidate here and find a new leg higher... or, if it can't hold above the 200MA (or the May highs), then the weight of the evidence would shift southward.
Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.
This article was written by