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Prepared by and Scott
Writing under the nom de plume of J.L. LORD

Friday | June 5, 2020

Hello Eizell.




The market fell on the open with renewed concerns of employment numbers, riots, etc., but the concerns were not large enough for the SPX to open lower than SPX 3010. The market immediately bounced to test the previous days highs of SPX 3031 but could not muster the strength to get nigher than 3128.91.

Once the market failed to get above yesterday's highs, it was doomed to fail. The rest of the day was marked with the SPX falling to get a glimpse of SPX 3100. Would that hold?

It was not until the last hour that the markets succumbed to small amounts of selling that it tested the underbelly of 3100. This was going on as the rotation out of FANNG stocks and into travel stocks continued. Airline and travel stocks flew like eagles while high tech struggled. As has been customary, and almost mundane, the SPX bounced in the last 15 minutes to close above 3100. This ensured that we would test the highs today.


American Airlines (AAL) – closed higher by 4.87 (+41.1%)
BOEING (BA) – closed +11.14 (+6.43%)
Carnival Cruise Lines closed +1.23 higher (+7.13%)

AAPL closed lower by -2.80 (-0.86%)
AMZN closed lower by -17.80 (-0.72%)


TODAY: June 5

TODAY – New highs (3138 is resistance)
LONG TERM – NEW ALL TIME HIGHS (possibly), and then a NASTY trade war sell-off

Unable to close below 3100 we are seeing how strong the markets are, and destined to test 3138 resistance as seen below:


I am still standing by my prediction (made December 31, 2019) that we will be positive for the year and making new all-time highs by the end of the year. I maintained this stance even when the SPX was down -35% for the year.

S&P 500 Price Limits

From 8:30 a.m. to 2:25 p.m. CST, there are successive price limits corresponding to 7%, 13%, and 20% declines below the previous trading day’s reference price.

From 2:25 p.m. until the 3:00 p.m. CST close of the cash equity market, only the 20% price limit will be applicable.

Average year with lots of intermittent volatility
(-3.67% so far)

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