The prospects of a Bull market stay alive as the major indexes hold above their 200-day moving averages.
Tuesday’s modest sell-off rang few alarms with the exception of Distribution for semiconductors (SMH) and retail (RTH.)
We might expect a quiet summer week if it weren’t for Employment Data to be released Friday. With the prospects of a double-dip recession haunting economists, this report might be especially sensitive for the market.
Our main concern going forward for this current rally is a crowd of eager sellers waiting to recoup losses over the past few months. In technical terms, this is called overhead resistance.
The key mark we’re using to monitor the trend is the 20o-day averages. Unless we see institutional-grade funds unwinding positions, we’re likely to become bigger believers that up is the path of least resistance.
We feel it’s a little too premature to raise our bias from Buyer’s Caution.