Stock Market Overview: June 17th
In last week’s stock market overview, we saw numerous bearish indicators. Well, it seems like the market has rebounded well with three strong up days to finish the week.
The RSI bounced off the 50 level, which is a strong bullish sign. Watch for resistance from the previous support line, as indicated in the chart. Also, the previous high of 1540 is another point of resistance. If the S&P can break through these two resistances, we may have another very strong run. While the market has been running strong, it hasn’t reached the point of hysteria and irrational exuberance that is so often identified with the prior major stock market crashes. I will provide an article shortly on stock market bubbles and crashes, so look out for that.
In the meantime, practice basic risk management techniques while investing so you’re prepared for the worst in the event of a major market decline.
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