The S&P 500 (ETF Proxy – AMEX:SPY) is grinding higher as the bullish power degrades. We expect that there will be one more bullish push, perhaps with a breakout to new highs. Unless there is central bank intervention, the odds are high that this will be the short term highs in the market. Once this reversal confirms, we will put on a strategic short position and expect price to work its way back down to retest the lows for the year.
Gilead Sciences (NASDAQ:GILD) passed its test and has accelerated away from the 50sma (orange line). Now, price has reached an area where we forecast price will begin to struggle. This presents an elegant place to lock in approximately 10% in gains in this stock!
Genworth Financial (NYSE:GNW) is just adrift within the green zone as it retests areas of 50sma (Orange line) support. Our forecast is still for a bullish resolution…However, these odds are degrading and stop loss orders may need to be updated next week. The longer the price stays stable, the more the bullish energy that attracted us to this stock will “leak” away.