First congratulation to RedHat; a testament to the growing importance of its contributions to businesses.
Red Hat, Inc. will replace CIT Group Inc. in the S&P 500 after the close of trading on July 24
Are we also seeing a sign that tech stocks are replacing financial institutes on the indices. First we have CISCO (CSCO) and now RedHat (RHT).
Is this also a sign that tech stocks may be the leaders in the next rally?
As posted on April 30, S&P has some space for a bullish run.
Previously I highlighted that it will face resistant from the kumo on the Weekly Chart.
Following is an update:
1. As expected, the kumo on the Weekly Chart is fairly on the spot. S&P touches it and start making an about turn. Moving forward, we still see major resistant for the S&P. The kumo suggest resistant level all the way till S&P at about 800.
2. On the Daily Chart, we have just seen the Tenkan sen crosses the Kijun sen. Volume has drop since May. A sign that the most buying-n-selling are done. Â On the Daily Chart, we see some support at 893. However, there is a chance that the forward kumo is going to twist and show a bearish trend.
Yesterday, little rally has seen Chikou Span breaking through the kumo.
If the index can continue to hold above this level and at much higher volume, it will be a great signal to load up some stocks.
The Weekly Resistant is at 932; quite a fair bit of space to make some bullish trades here.
However, I will need to see SPX moving up and closing above to feel Â 870 completely to be sure.