Markets Need To Make A Stand Soon
The CCM Composite Market Model hit a recent high of 63 on July 3. As of Tuesday’s close, it has pulled back to 50, which is starting to become concerning.
The S&P 500 closed Tuesday near several forms of possible support, defined by the intersection of trendlines A, B, C, and D below.
The markets are awaiting the release of the Fed minutes at 2 p.m. EDT. Any hint at another round of QE could help put a floor under prices. If the minutes are not pro-QE, the markets could take another leg down.
The weekly chart of the S&P 500 below shows longer-term, and more important, support comes in between 1,280 and 1,300.
The recent advance in Treasuries continues to show waning upside momentum. Since Treasuries are “safe haven” assets, the bearish divergences below leave the door open to a stock market rally.
