The market is going sideways.
And many people are freaking out.
Here’s SPY:
Yes, it’s sitting nicely above the 200-day moving average but it hasn’t been roaring upward anymore.
Is it ready for a fall? Is it time to switch into global equities and give up on the U.S.?
If we look at seasonality, July is still a bullish month. And if we look at sentiment, it’s still solidly bullish. Here’s the latest Fear & Greed Index reading:
Still in Greed mode.
And Cheesecake Factory Inc. (CAKE) has been flying.
But it’s taken a pause lately – like the SPY.
However, it’s now charging toward a breakout level.
Here’s the chart:
A break out of its consolidation range could lead to another big explosion.
A move above $66 could be the trigger.
We’ll keep an eye on it.
Happy trading,
Scott
