With Earnings Pouring In, Market Still Rangebound; What Lies Ahead?

Last week, Intel set a very positive tone for the markets. Intel’s earnings were strong on both sides of the income statement, sales and earnings. Several other large companies also had better than expected earnings last week, moving the market to the high end of it’s recent range.

In a recent post http://street-cents.com/2009/06/11/still-need-a-pullback-but-happy-with-sideways/ we state our favorite index, the S&P 500 is rangebound and we would be happy with sideways movements until we receive better data.  

Well, we have better data currently, the economy seems to be on the mend, slowly, but moving in the correct direction. If we continue to receive positive earnings reports, the challenge will be breaking the sideways, range bound market movements.  If earnings continue to go well, we would like to see higher market prices before our next rest. Remember, the markets rarely go in a straight line, so a rest will eventually be necessary, and healthy. Patience JK

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