Broader Market Will Pullback

spx_weekly

The S&P 500 is kicking off the month with a high-volume test of the 200-day moving average.

The ends and beginnings of months are usually a time of portfolio adjustments for funds.

We’ve expected the 200 DMA to be tested, as mentioned on previous posts.

But now that we see a gap on the charts made with today’s leap higher on the open, we expect it to be filled – sooner or later.

Watching breakouts is key now.

Recent new-highs on stocks like STAR, SXCI and FUQI need to stick for us to have confidence others will follow.

The broader market may pullback. But a in a truly strong market these breakouts will hold.

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