Once again, the market is taking it personally. How many times have come here in the past year and a half playing Lord Rothschild to warn you we are dealing with a similar market from the late 30’s? What happened was I’ve been talking about it a lot longer but Rothschild went public so it gave the rest of us who are awake a lot of credibility. Still, the market went higher.
Sparkling. Spectacular. Stellar. Sterling. Stupendous. Super… and those are just the adjectives starting with “sp” through “su” that describe the Q2 earnings season for the S&P 500. Through Friday, 91% of the companies in the S&P 500 had reported earnings, and according to the earnings mavens at FactSet, this earnings season has broken all sorts of records.
The S&P 500 is painting too many short side indicators near here to ignore the idea of a weeklys options short call spread 2855/2850 strikes, using under $500.00. The market internals collapsed at lunch, while the indices formed sell-signal candlesticks on many time frames. Prices are beyond my projected highs of the week, and sideways pivots for the month and week are present.
After a five-day losing streak, the euro/U.S. dollar (EUR/USD) currency pair has finally – at least for the time being – put an end to its recent downward trend and was climbing back towards the 1.16 handle. Other major euro crosses were also trading higher, suggesting it was not just the dollar weakness that had helped to underpin the EUR/USD.