These are not easy days for equity bulls but that is usually when the best buying opportunities arise. The recent decline has avoided closing below the 38% retracement of the entire rally from last summer's lows and that is a good sign that the decline was more of a correction than the start of a major pullback. That's not to say that damage has not been done on the charts and it will still likely take a while before the market starts to move higher again.
Given the usual strength that takes place into the end of the month, a move higher will likely be on hold until the calendar approaches the end of the month into the second half of next week. The bigger picture still has the positive seasonal picture, a moderate sentiment reading and a strong price pattern in the bullish camp.
No comments:
Post a Comment