Summary

The major indices started June on a positive note, as the S&P 500 (SPX), S&P 100 (OEX), Invesco SPX Top 50 (XLG), Nasdaq, and Nasdaq 100 (QQQ) all continue to trace out bullish short-term flags. In the intermediate term, they are all still working on bullish "V" formations. On Monday, the SPX rose 0.4%, the OEX added 0.5%, the XLG tacked on 0.6%, and the Nasdaq and the QQQ gained 0.7%. NYSE breadth was weak, with 162 more decliners than advancers and advancing/total issues and advancing volume/total volume both near 50%. Sector strength was limited to Energy (+1.3%), as crude oil jumped 4% and natural gas 8%. WTI finished near $63.15/barrel. A break over $65 will complete a small inverse head-and-shoulders pattern and might open the door for a measured move up to the low/mid-$70s. On Monday, we made a brief comment about Bitcoin and will continue that analysis today. The crypto currency has dropped from a closing high of $111,722 on May 22 to about $104,840 as of Monday at 4:30 ET. Bitcoin has busted its uptrend off its early April lows, when the crypto was trading in the $74,500 region, and may have completed a five-wave advance. It has now traced out a lower high and lower