Tuesday’s seller dominated action gives pause to the Bull, but it’s not enough to make us Bears.
While it was technically distribution for Big Board volume, its overall light volume didn’t make for a clear indication that institutions are in sell-mode.
But what’s concerning is the fact that recent breakouts from top-rated stocks showed deep pullbacks.
Unless stocks recently breaking out of techncial bases, like LULU, MELI and DECK can resume their uptrends, it won’t give us reason to buy others poised to do the same.
We’ll wait another session or two to have a better understanding of the true trend in growth stocks.
The fact that Retail (XRT) and finance (XLF) are struggling to hold their 200-day moving averages has been a concern, as mentioned in our latest Market Report.