It was a relatively dull session yesterday (Monday July 11th) with stocks gapping higher only to trade sideways up till now. I expected stocks to grind higher, and for vix ETF to keep moving lower for another day or three.
Coffee continues to be on caffeine-high today testing near today’s high, which looks as though it will continue to run higher in the coming days.
(Click on image to enlarge)
Precious metals continue to hold up but I don’t expect them to go much higher until equities reverse down in the next week or so.
A couple leading sectors have been underperforming (transports, and financials). The stock market needs the financials to take part in this rally to new highs for the SP500 if the market is to have any real power behind it. The fact that both these key sectors are underperforming tell me there is not a ton of power behind this move to new highs for large cap stocks.
