Monday 31 July 2023

Powering upward



The SPX saw a net July gain of +138pts (3.1%) to 4588, settling a clear 10% above the 10MA (4133). Momentum ticked upward for an tenth consecutive month, having turned positive at the July 3rd open.

Whilst the macro and geo-political situations continue to deteriorate, the market doesn't care, partly on the notions of cooling inflation, no recession, and that the Fed will eventually cut rates and spool up the printers.

Things only turn interesting again for the equity bears with a monthly settlement back under 4K. Bulls could seek the upper bollinger, currently in the 4700s, as seem realistic by around Labor day.

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