So much for a V-shaped recovery.....

With less than 70% of NYSE stocks trading above their 50-day Moving averages in June, compared with more than 90 % in May, is bullish market sentiment finally running out of steam? The World Bank forecasts a 2.9% contraction in the global economy, a deeper recession than was predicted in March. The S&P500 duely reacted negatively opening 1.18% down at 910.38. Worthy of note also, is that we have a crucial day on Wednesday with the convening of the FOMC. We'll watch out for the tone of their statement for clues on fiscal policy.
Keep in mind too, that Corporate Execs are selling stakeholdings at the fastest rate in 2 years: the last time we saw this much selling was June 2007, 1 month before Bear Sterns Hedge Funds filed for Bankruptcy. Total Net Sales reaching $1.2Bln over the past 14 weeks, according to InsiderScore.com.

Technically, the upshot of this is that we find ourselves in limbo. There are two prospective entries on the horizon however, one more speculative than the other. On the hourly chart below we have descending support, in play since June 3rd, which lends itself to a long position at 900/900.6.




The higher probability entry is detailed in the chart below. Since March 2nd we see the S&P500 has been faithful to the ascending channel highlighted. A long entry around the area highlighted in blue- 888/895, may yield dividends with effective trade management.



Happy trading all!