The blue-chips are looking for their first Monday win since mid-July and have cleared major resistance to start the week. Last Tuesday’s win on the Dow was a good omen but a negative Friday close last week keeps the Monday/ Friday closes mixed.
Of course, the close will be important before anything is official but we mentioned at the start of the month the bulls could rally through the second week of September and push the top of the trading ranges before another possible dip lower.
The headlines over the next few weeks could create some heightened volatility and we are seeing that today despite an up market.
Encouraging economic data from overseas has helped the bulls get off to a good start that should last through midweek but the back half is what we are worried about.
We are well positioned to play a possible breakout if the bulls do clear the next wave of resistance but we have started a few bearish positions in case they don’t.
The Dow is up 126 points to 15,048 while the S&P 500 is gaining 12 points to 1,667. The Nasdaq is surging 35 points to 3,695 and the Russell 2000 is higher by 10 points to 1,039.
There is an earnings trade we listed on our Watch List we like ahead of today’s close so let’s get on it. Subscribers, check the Members Area for the updates.