Brexit is nearing its end, but it was time for the US Federal Reserve chairwoman to take center stage. The market was quite indifferent to the chairwoman’s testimony on the Hill today. For the most part today was a relatively quiet day in the indexes. The day’s range was quite tight with volume coming in just about 5% lower across the board. Not an active day by any stretch. Crude prices backed off a bit as there was a truce in Nigeria, but crude will like be more of a dollar play than anything else. If the dollar weakens further expect crude and other commodities push higher. It is clear the Dow and S&P 500 are the leading indexes with the NASDAQ lagging behind. If we are to break higher look for either or both to lead us higher. A quiet session is not a bad thing and we have enough positives to break us into new high territory.

There are no guarantees, but odds still favor us continuing to push higher. It is summer and we always have the possibility of us rolling over taking out last Thursday’s low. If we see Thursday’s low taken out there will be some follow-through. However, after today and given the price pattern in the Dow and S&P 500 it is hard to think we push lower at this time. Do not forget 2nd quarter earnings season is just around the corner. We should certainly see some action post earnings in a few weeks. Stay tuned.

Volatility as measured by the VIX is elevated given the relatively tight trading range the market has been in. Sure, it’s a bit choppy. However, looking at the DIA, SPY, IWM, and QQQ average true range we are at the low end of the range. Option buyers are certainly expecting future volatility to pick up where there is very little in the market at this time. As noted in last night’s commentary Monday’s high is an important inflection point as well as last Thursday’s low.

We are getting new long signals suggesting there may be something left in this market’s tank. Keep those losses small.