Overall Market View

by Michael Keane

In the last couple of weeks, the market has been moving forward in an upward motion. Upon initial observance, skepticism was alive and well. But after this week's movement, the idea of a longer term uptrend may be upon us. This analysis has been strongly technically based.

A resistance level on the S&P ETF (symbol SPY) was expected to be $200. A resistance level for IWM was expected to be $105.00. This was based on a short term W formation being formed.

But both these levels were breached. After doing some further research technically, a large bullish doji candle was found in the SPY for February at the monthly level. This has now been followed by a strong bullish candle this month. The same pattern can be found in the IWM. Further, the weekly charts show a strong move through the 200 MA for IWM and the 20 MA for SPY.

To be sure, volatility is very high in this market and a new perception can show up quickly. Earnings are upon us and it is an election cycle that does not seem to be in need of headlines. But another up leg looks likely.

** A chart from Greg Harmon @harmongreg on Stocktwits assisted in the analysis**


**All posts on this blog are information and opinions only. They are not to be considered recommendations to buy or sell any security. Please do your due diligence first before trading and investing. Please direct all questions and comments to the blog or to kdkfund@gmail.com or on twitter @kdkfund.

Realty Income Joins S&P 500 Index

Last week it was announced that KDK Fund owned Realty Income will be joining the S&P 500 Index (Bloomberg story link here). This action will allow more mutual funds and other funds focused on the S&P to invest capital into the company. We are thinking this might be part of the reason as to why the company released 5+ million more shares into the market. But that is just speculation (as is everything else ;)). KDK Fund also owns S&P 500 Index members Sysco, GE, Ford, and AT&T.

**All posts on this blog are information and opinions only. They are not to be considered recommendations to buy or sell any security. Please do your due diligence first before trading and investing. Please direct all questions and comments to the blog or to kdkfund@gmail.com or on twitter @kdkfund.