June 28th, 2024

End of the month, end of the quarter. The action comes on the close, and based on what we’ve seen so far this week, it’s likely to tilt towards the buy side. I’ve been saying that I think the market is stalling and heading for a mean reversion, but it’s not there just yet. Today is the day where the bulls can regain momentum into the close and see if it’s sustainable next week. If today doesn’t bring back momentum for the bulls, then I do think in the coming days we’ll see the market start to consolidate and slightly head lower.

How do we trade in this market environment?

Rates are starting to come down slightly after this PCE number, giving the indexes more ammunition for a bid into the close today. It’s likely a day to focus on long signals for day traders and not to fade rallies. Today is less about technicals and more about the end of the month/quarter flows.

If the bulls can regain momentum today, don’t fade it, as this rally could once again gain momentum. If the rally fades today, then next week we’ll see if mean reversion is the trade. Keeping it small and less is more today. Wishing you all a wonderful weekend!

Cheers, DELI