Coiled Spring Capital Mid-week update - July 20, 2022

Our weekend report argued for more index upside after a quick after a first touch fail. This is exactly what happened. Monday sellers came in late and reversed the market. Many traders likely set up short on that failure, but our work suggested a break up was more likely. Here is a snippet from that report:

The market closed today @ 3959 and for the first time in quite a while, the SPX is above the upper Bolling band.

We have been quite adamant that the Nasdaq and that growth stocks were showing signs of taking leadership for the last few weeks and this week that was quite apparent. Here is some commentary from last weekend's report:

Since the weekend, the growth segment of the market is grossly outperforming the other indexes so our call was accurate.

We also posted this on public twitter as something to watch:

Since the DTL break, the Dow is up +600 points.

So has the rally run it course?

Join our premium content below for only $19.95/month to get this updated view. Our analysis is a great addition to all traders and professional money managers work-flow. We look at hundreds of indicators, cross asset relationships and macro fundamentals to round our view. Our system is proprietary and very affordable. Please give us a try.

Subscribe to Premium to read the rest.