Good morning,
Below are the latest 3 From The MMP. The Monday Morning Playbook (MMP) is the flagship publication of Beat the Bench and now includes 2 ETF models, in addition to more charts, analysis, and actionable takeaways.
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S&P 500 breaks the range to the upside
The S&P 500 finally broke its 6-week range to the upside last week and held the breakout point, albeit unenthusiastically, on Friday. Early this week, bulls will want to hold the breakout point, $418 on SPY and 4186 on the S&P 500 cash index. If we lose the breakout point, holding the bottom of the range becomes even more important.
Could this be an inverse head and shoulders in small caps?
The S&P 600 gained 2.3% last week, its best since the week ending March 31. Short-term, we need to see $98 broken to the upside on IJR, but this is one good week toward “the split” closing the right way. Furthering the bull case for an extremely large bottoming process is breadth, which has shown fewer 52-week lows on each successive major low going back to last June.
NVDA earnings Wednesday after the bell
Nvidia reports earnings this week and heads into that report 62% above its 200-DMA. THIS IS NOT A TOP CALL! But it does suggest the rubber band is getting very stretched and the bar for earnings is likely high as the stock closes in on its 2021 all-time high.
That’s it for this week, thanks for reading! If you like my work, please consider upgrading to a paid membership and tell your friends about 3 From The MMP.
Scott
Scott Brown, CMT
Founder and Chief Investment Strategist, Beat The Bench LLC