Sentiment levels are currently consistent with what is found at major market bottoms, not tops. June 28th and 29th were consecutive 90% up volume days on the NYSE. This has only occurred 7 times in the past 50 years and forward returns are extremely bullish. We are currently entering the two strongest consecutive months during election years, with average gains over the 2 months of 5.1%. Despite many people labeling Brexit as a black swan, but the S&P-500 is still bullish on all time frames and within 2% of all time highs.
The bears had the chance earlier this year to make their money in January and February yet for some reason have stuck around and overstayed their welcome. Their final chance to make some good money was this week during the Brexit scare and those that did not cover will be regretting it very soon. While I’m not sure what the next week holds for the S&P-500, I think we will see new all time highs at the latest by the end of July.
To read more, you’re welcome to follow this link to the Seeking Alpha article written by Mr. Dart
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