Week In Review (6/8 - 6/12)

Stocks finished the week largely unchanged as the averages zigged and zagged all week.  The S&P 500 started the week by dropping 15-points between Monday and Tuesday, it then staged a massive 25-point oversold bounce on Wednesday, did little on Thursday and showed its fatigue on Friday by falling back to where it started the week. A 60-minute chart of the week shows the weekly progress.  Meanwhile the VIX started the week testing the upper range only to once again sell off during the week as the market rallied.  

The daily chart continues the range bound theme that we have followed for months. The S&P 500 is creating a nice base/consolidation to make a nice move.  The path of least resistance makes the case for an upside breakout but we'll wait for price to confirm in either direction to have more confidence.

From a sector standpoint financaials and consumer staples led the way while weakness showed up in the energy patch.  The chart below from stockcharts sums up the weekly sector rotation.  

Here's what we were reading this week:

It's a stock pickers market 

The bull market that didn't end in a crash

Chart o' the Day 

It's not your imagination the stock market really is going nowhere