What if the next Fed move was up?
Welcome to the end of the second quarter, and new all-time highs in the S&P 500.
Is this us climbing the wall of worry?
Yes, indeed as the retail sector lags behind even further.
However, XRT remains above critical support.
And as for the long bonds?
With today’s rally, the market is looking for lower yields and a rate cut.
For today though, I thought we should pivot to another passion of mine-Bitcoin and altcoins.
To remind you, I did a radio segment on bitcoin as a primer for those still scared of it.
Headlines today included STABLECOIN LEGISLATION COULD BE DONE BY MID-JULY, WILL BE A SOURCE OF DEMAND FOR U.S. TREASURIES
The legislation, which has already passed the Senate, aims to regulate stablecoins – cryptocurrencies pegged to the US dollar – and is expected to lead to increased purchases of Treasury securities by stablecoin issuers to back their digital assets, according to a Wall Street Journal article.
I am focused today on Chainlink as an altcoin that has real function and could be ready to trade at much higher levels.
Simply put, Chainlink acts as a bridge between the blockchain and the external world.
This enables decentralized applications to access external data, events, and payments, expanding their capabilities beyond what’s available on-chain.
In other words, Chainlink is a decentralized oracle network that sends data from external sources, something blockchains are not designed to do.
The chart shows a potential double bottom from the April lows and the June lows or around $11.00.
Essentially, if the price 13.50 holds, that should confirm that bottom.
On Real Motion there is a slight bullish divergence as the red dots are close to the 50-DMA while the price is still a bit away.
On Leadership, Chainlink is trading on par with the benchmark.
That is incredible when you consider that SPY made new highs and this an alt coin.
A cryptocurrency used to pay for services on the Chainlink network.
Let that soak in!
ETF Summary
(Pivotal means short-term bullish above that level and bearish below)
S&P 500 (SPY) 613 support after making new highs
Russell 2000 (IWM) 215 pivotal
Dow (DIA) 452 all time highs
Nasdaq (QQQ) 548 support
Regional banks (KRE) 55 support 60 resistance
Semiconductors (SMH) 283 2024 high and now 270 support
Transportation (IYT) 68 pivotal
Biotechnology (IBB) 123 support 130 resistance
Retail (XRT) 77 pivotal
Bitcoin (BTCUSD) 105k support 110 resistance