The expectation coming into today was that SPX would tag the upper end of the expected move to close out the week. For all intents and purposes, this is what happened. SPX hit a high if 7579, while the upper end of the expected move was at 7581. The entire day other than a random “tweet” moment was a consistent push higher and we closed at the highs of the day.

This is what a typical summer day looks like. I ended my post yesterday saying that today would likely feel like a typical middle of summer Friday and I think we can all agree that is what it felt like. Low volume, low volatility and just a very orderly climb higher throughout the day. Other than the tweet, SPX was having a pretty orderly higher high, higher low session.

The daily chart continues to push higher and SPX is just about 45 points from the all-time high. That is not a large amount to overcome and could even happen on Monday. I think for a lot of people this is the expectation for next week. It would actually be a very sad moment for the bulls if they cannot get to 7620 at this point. I would also ignore that massive wick to the bottom today. It was because of a tweet that only mattered for 1 minute.

So far the theory from yesterday that Wednesday was a “higher low” seems to be playing out. We have had some pretty convincing follow through the last couple of days. SPX has rallied nearly 160 points from the low on Wednesday.

The short term chart also confirms this with SPX breaking out of the grey box it was stuck inside of for a couple of weeks. A retest is possible, but will likely be a “buy the dip” scenario if it happens. I think the upward momentum is starting to build up again.

I am sure on the shorter time frame chart you can tell exactly where the tweet was. It was just a random wick and is pretty meaningless from every perspective – technical, fundamental and even sentimental.

We are entering the middle of July, the most bullish month on the calendar. Earnings season officially kicks off next week and we also have some key economic data like CPI & PPI. While some could see this as a potential for a drop, it is also equally (if not more) a reason to rally and rally hard.

If earnings and data are received well, we could have an incredibly bullish week where SPX shatters the all-time highs and runs away.

I’ll have more over the weekend covering the expected move and other key levels to watch for.

Stay tuned!