Chart Talk {06.13.16} The Song Remains The Same

At the risk of sounding like a broken record the most recent action in stocks, the 3.5% rally from May 19th to June 8th, hit resistance last week and then promptly sold off at the end of last week.  Stocks look like they'll extend that decline at least at the open today.  Hard to say what comes next.  On one hand stocks are overbought and there's enough short term issues out there such as Great Britain's referendum on leaving the EU and now yesterday's horrific shooting in Orlando so that one could make an argument for at least a  pause in the advance.

The other side would be that per my discussion last Tuesday, stocks have largely shrugged off entire lists of bad news since April and kept chugging higher.  In that vein, one could argue after a slight consolidation stocks power to new highs.  Not saying either scenario will happen.  These though are two of the possibilities we have to consider right now based on how stocks are trading.

*Long ETFs related to the S&P 500 in client and personal accounts although positions can change at any time.

*Charts are from Tradingview.com.