There is a little over 1 week left in the June contracts, after which it all moves to the September contract months. This is the first chart for September and all the others will also follow. Since the April bottom the SP500 has had a bullish trend, but the shape of this trend sure looks diagonal in nature, which usally means the trend is going “against” the larger trend. For now I will keep working a potential wave two rally which is starting to come up to some strong resistance levels. 2815 is not too far away which can get hit in a mini flash move to the upside.
That may be wishfull thinking as this is all taking too long to play out. The big stocks inside the SP500 are keeping it all going as some of the “FANG” stocks seemed to be doing the heavy lifting. The big short bets against Tesla have been unsuccesful at this time. In the short term the SP500 can keep on rolling along. Overall stocks have been ignoring all the fundamantal news as they just don’t care. If some “bad” news comes out and the markets don’t like it then we know we are over on the big bearish side already.
The VIX may also still have to hit $12 so that also can keep this bullish mood alive. It may take a drop well below the 2540 price level before the investing herd wakes up to a potential bear market.