Well it certainly has been an eventful week already…
Biden has officially stepped out of the race as Kamala Harris appears to be the front runner for the Democratic nomination. But what does it mean for markets this week?
Let’s dive in..
Given we are opening up post Op-ex, I expect Monday to be relatively balanced chop with no convicted direction taking place as far as price action is concerned in SPX, SPY, QQQ, etc.
If we were to close the month of July as the chart looks right now I would be very concerned to say the least.. Turmoil and uncertainty are not good for markets. Paired with an exhaustive candle like we have so far and quantitatively being this far from our 50 month moving average is a perfect recipe for a pull back.
SPX Monthly Candles: 21 and 50 month moving averages
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