The Ps (S&P 500) lost 1/3%. So far, their recent breakout remains intact and they only appear to be pulling back.
The Quack (Nasdaq) ended off a smidge. Shorter-term, it only appears to be correcting its recent leg higher. Longer-term, I’d like to see it clear its March highs to make new highs for the year.
The Rusty (IWM) lost nearly ½% but it’s not the end of the world here. So far, it too only appears to be pulling back, correcting its recent leg higher. Ideally though, I’d like to see new highs for the year here too.
One can argue (as pointed out on Wednesday) that the Quack and Rusty are stalling short of their old highs. I wouldn’t get too excited just yet though. Let them correct and then see where the next leg takes us.
In spite of the external softness suggested by the soft indices, internally the market seemed okay. Some areas such as the Semis and Energies actually made new highs. Quite a few individual Gold stocks began to wake up. We might be getting another shot at these issues real soon. Come to the chart show and I’ll show you what happened last time and how the second time might be the charm.
Speaking of the chart show, I’ll also be covering the stealthy bull market that we’ve had this year in IPOs. Is it over? Will there be more? Come to the show and I’ll explain.
Getting back to the Rusty and Quack, ideally, (again), I’d like to see these two break out with vigor, not look back for a while, and then have orderly corrections.
As usual though, continue to take things one day at a time. Wednesday was a little soft (duh implied) but not much has changed. Utilities were a hit fairly hard but I don’t think that they are necessary for a new bull leg.
So what do we do? Because the methodology requires a pullback and we haven’t much of one just yet, the database hasn’t been producing meaningful setups. Therefore, continue to let things shake out. Listen to the database. Yet again, if this is the mother of all bull legs developing, we’ll have plenty enough time to add on new positions. In the meantime, honor your stops on existing positions.
Best of luck with your trading today!
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