ARE YOU BORED? THAT IS GOOD.

If you have the feeling the market is so boring you are right. The S&P 500 has done 13 consecutive trading days without closing up or down by more than 0.5%. That is good sign of bullish market because after five weeks gaining the index couldn’t go down significantly. The history indicates that is a good marker for more bulls. When happened earlier this same pattern within a week usually the index jumped couple of percentage higher. This pattern might be a silence before the storm.

Without any significant moves, this narrow trading range and low volatility was the same again Monday. Only the Nasdaq was green at closure thanks to Yahoo, Tesla and Microsoft, those three tech stocks helped Nasdaq to gain for another day.

S&P 500:  -0.3%
DJIA:         -0.2%
NASDAQ: +0.2%

The European markets after four weeks of gain pulled back Monday thanks to the Scottish independence issue, which seems more serious now.

The slight correction and consolidation in US and Europe meaning the investors after few weeks of rally take a breath. The S&P 500 is up 8.3% this year, which is nice, so Mr. Market deserves some rest. Technically on S&P 500 we should wait of confirmation of bullish momentum. The index needs close above the 2,008 level. If that will happen the bulls will lift up the index much higher further.

The BFM Assets Team.