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The call for this week
By Jeffrey Saut | June 26, 2017

Concentration?

The S&P 500’s chart pattern is all “coiled up” again (see chart on following page). As the uber smart Jason Goepfert, of SentimenTrader fame, notes:

All coiled up, again. The S&P 500 has gone nowhere since it broke out to a new high three weeks ago. Its range over the past three weeks is one of the tightest-ever following a breakout. That's normally considered a bullish consolidation pattern, but even over the past few years, there were a couple of exceptions to that theory. Historically, how the S&P performed over the next two weeks had a big say in how much it returned over the next year.

We think, consistent with our models’ readings, that the upside chart breakout of three weeks ago is for real. Our models suggest this is the case, and our reading of the stock market’s “internal energy” continues to telegraph there is the potential for a decent upside move from here despite what the negative nabob’s “valuation models” believe. This morning, well that’s not entirely correct, for we are recording this on Sunday night, without the benefit of tomorrow’s news (or future’s pricing readings) because we are speaking at an event. Nevertheless, at 11:00 p.m. Sunday night, the pre-opening S&P 500 futures are “up” and the equity markets look higher into the end of the quarter and the July 4th holiday.

http://www.raymondjames.com/pointofview/concentration

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