Although the major indices struggled all of May and most of June, Wall Street rallied sharply over the past few days. What’s more is not only did the key indexes technically hold their ground during this two month market correction, they all have now broke above their respective 50-day moving averages. This is a very bullish sign going forward, however, I would like to see multiple days of trading above this moving average metric. The last trading day of the second quarter saw the Dow (chart) close up 152.92, the Nasdaq (chart) up 33.03, the S&P 500 (chart) up 13.23 and the Russell 2000 (chart) up 7.51.
All eyes now will be focused on earnings reporting season which begins next week. Expectations for corporate earnings are high so I am not only looking forward to how corporate America reports, but what their future guidance and outlooks are. No matter what the case is, I am expecting volatility to kick in over the next several weeks. Good luck to all.