Perspective on a Rangebound Day

The major indices looked rangebound not long after the open this morning, and I remarked as much on the private Twitter feed with Members. As it stands now, this sort of action can be argued as proper digestion for bulls in light of the sharp rallying late last week.

We have a few key events this week to wade through before we get to Independence Day holiday as seasonality temporarily turns more bullish through about mid-July, namely Powell in Portugal on Wednesday, GDP, and some inflation data to boot. 

With this in mind, keep an eye on the likes of Goldman to sustain a relief rally. On the monthly chart, below, we can see GS effectively bouncing off its prior 2018 highs. For bulls, this is plus and sign of hope, if only near-term, to see the stock react to prior multi-year resistance as newfound support. 

We have not discussed most banks for a while, and for good reason--They were value traps. But with a sharp value player I know noting the cheap Price/Book Ratio on Goldman, I think the stars are aligning for banks to rally into mid-July or so. 

Also on the value front: Keep an eye on oil services play RIG, soundly beaten-down but showing some life today.