Markets performed better today. The NASDAQ rose above its 50 dma but the S&P500 & DOW remain below theirs. They closed in the upper portion of their daily range, but volume was weak.
The market continues to trade in a fairly narrow range but the chart pattern has changed from a “channel” to a “wedge”. This pattern could be characteristic of a market top.
Regardless of the method used to draw simple support and resistance lines, the upward trend appears to be weakening with a flat top and a break in support occurring on June 12th. (See chart.)
The Federal Reserve’s 3.3% growth forecast for 2015 has been revised down to 2.3-2.7%. Oddly enough, the lack of growth could keep interest rates from rising and continue to juice the stock market on to new highs. Time will tell.
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