Top growth stocks faltering and heavy sell volume means we’re likely to see the major averages test below their 50-day moving averages. It could be a temporary visit or potentially longer. We’ll watch to see how some of the better bid issues in the last few months hold up, with the stronger ones likely to lose less ground and send us signals for new strength, and the weaker ones telling us where trends in unloading may occur. Pullbacks are basically litmus tests.
Our Buyer’s Bias sticks as long as the major indexes trend above their major moving averages and we don’t see any serious sell volume.
It’s a sleepy summer week. Heavy players are on vacation. We don’t expect to see volume increase until the end of summer.
Stay tuned. We’ll have some interesting IPOs to look at this week.