Author: Tarquin Coe
Covestor model: Market Timing Technicals
Disclosure: None
Going into June we remain close to fully invested in anticipation of an eventual reassertion higher by the general market, once the sideways consolidation of recent weeks is resolved.
In the second week of June the S&P 500 is testing horizontal support across 1295. This level rebuffed breakdown attempts in February (twice) and mid-April.
Additionally, a Fibonacci 61.8% retracement of the March through to late April high stands at 1295.48, adding credence to possible support just beneath 1300.
Alternatively, breaking down through 1290 would suggest that the index was journeying down to at least the March low (1249.05). Should that be the case, we shall reduce the net long exposure in the portfolio.
As per last month, many of the longs in the portfolio are targeting a weakening Dollar. That includes international ADRs, some of which have been bought due to their attractive yields coupled with bullish chart technicals.
Sources:
Chart from Tarquin Coe, Stockcube plc; source data from Bloomberg
