Next leg up...

Since the high of June 8 and discussed in our previous blogs, the market has been in a perpetual consolidation period. At that time, the short-term bearish signals kicked in and you could see SPY trade in ranges between high of 315.7 and low of 298.93.

July 2, 2020, was a different story.  With headlines of COVID-19 making a resurgence and several states retracting openings, the market made a break out of consolidation period.

If you look at the screenshot below of SPY, you can see that on Thursday, July 2, SPY made a move up that triggered a buy signal for the market.  The next leg up can be the re-testing of the June highs.