The major indices are all pretty much where they were 12-months ago, and with this earnings season limping into its last few days, the most likely outcome for the summer is more tepid performance.
Last week I said that choppy conditions were likely to continue through earnings, and that was a good call.
I also mentioned that the bearish setups generally looked tidier than the bullish ones, and this week we can see that there are actually more bearish setups than bullish.
Again, with some notable exceptions, earnings have been pretty dull and I expect they will continue in that vein. Moribund earnings seasons are typically followed by moribund conditions.
The Main Indices
The S&P is moving sideways but it’s not looking particularly ‘compelling’. The Invesco QQQ Trust (QQQ)looks, if anything, a bit overbought. The iShares Russell 2000 ETF (IWM) looks like the path of least resistance is down. The SPDR Dow Jones Industrial Average ETF Trust (DIA)looks wobbly as it bounces just on top of its 50-dma.