Stocks Now Trading in a Pivotal Range

How it goes from here may set the tone for the rest of the month.

Technical Edge — 

• NYSE Breadth: 23% Upside Volume

• NASDAQ Breadth: 31% Upside Volume

• VIX: ~$25.50

The S&P sputtered despite a better-than-expected jobs report on Friday and ended the week lower by 1.2%. We got off a quick 15-point winner off the open and it was a chop-fest after that. 

Now the bulls have to be careful here. 

While a “pause” was a great development for longs, we must see support continue to hold. After a powerful upside thrust from May 25 to May 27, the S&P has been consolidating. If that consolidation rolls over to the downside, the low is likely in play. 

If it clears resistance, we can see further gains. Let’s have an open mind with how things can go. 

Game Plan — S&P 500 (ES & SPY), Nasdaq (NQ), NEX

We have a pretty similar setup across the board on the indices right now. 

S&P 500 — ES

Coming into this week, it’s very simple. The ES is holding active support (the 10-day ema) and consolidating in a prior support zone.