The S&P500 finished the week with no change, Nasdaq moved up just a little bit. We had a very low volume and low volatility week, exactly what traders hate! The week started with some positive economic news, however ended with a terrible May employment report. A report which in fact helped the market hold to the highs because of the assumption that it will delay the next FED rate hike. We are not expecting a rate hike in June. The market is showing some strength by holding to the highs, which is very interesting because two weeks ago we moved up by 2,3% and in fact we were expecting a possible pullback. Yet, the market did not pull back, which means that the market is still waiting for the news. The news may come this week on Wednesday, when we have the FED meeting results, which will probably determine market direction this week.

Let's take a technical view of the market. As you can see on the S&P 500 daily we are still holding to the highs. No pullback this week and we are holding just below the 2100 area, which is a very strong resistance point. It is a very interesting thing to see this week if the market will keep on holding to the point or move. We are expecting a very big move, either up or down, however since we are holding to the highs, it is more likely to see an upside move.

Let's take a look at last week picks. Our first long last week was MDT which is doing great. It is 1,5% up. It looks god and I expect that it will continue. My first target was 3% and we are not there yet. My second pick for last week was BABA long. BABA did trigger, however fell, so we have a loser over there. The maximum loss that I take at such trade is never more than 3%. So BABA is out of the game.

Let's have two picks for this week. My first pick for the week is SYK long over 113,85 USD. It looks great, it is holding to the highs. It is a medical equipment company and I hope it is going to continue higher. My second pick for the week is very interesting. That is CSC long over 51,10 USD. As you can see CSC gapped up very strong few days ago and it is holding near the highs and may be moving higher. We call that a "short squeeze", so in case it moves over the highs, it is very likely there will be some stop orders for short sellers, which means they will buy, they will have to cover the shorts, which means it will help the stock move up. So in case CSC moves over 51,10 USD I expect it to continue higher.