The market continues to act well. Although we technically closed down for the week, we aren’t seeing any medium or longer term warning signs. A small pullback is certainly expected (and welcomed) after such a strong runup over the past month.
Yesterday we had a strong decline on increased volume which does create a small amount of concern. With that said, all our indicators still signal more upside from here. I think yesterday was just a byproduct of the Iraq situation, which certainly could continue to create fear in the market but today’s action really showed that the fear was short lived and not indicating a longer term trend.
We also certainly could point to the low volume of this entire upside move over the past month, and get nervous over this lack of buying volume. Although this does create some concern, our shorter term indicators are very bullish regardless.
Bullishness sentiment is again at an all time high, which can indicate we are nearing a top again, but as I have mentioned in the past … sentiment indicators are secondary in nature and as a result not incredibly reliable.
Leading stocks are once again … leading, with the Nasdaq and Russell 2000 outperforming since the bottom of the last correction was formed in mid April.
For now, we stay fully invested with little cause for concern.
On a personal note, if you haven’t had a chance to check out my book, please check out the “look inside” feature at Amazon here … http://www.amazon.com/gp/product/1499245823/ref=as_li_tl?ie=UTF8&camp=1789&creative=390957&creativeASIN=1499245823&linkCode=as2&tag=randmaur-20&linkId=NFV5VUZYKSLNVXMS
Hope you have a wonderful and safe weekend.
Resnn Investments, LLC