Technicals of the Market Still Good

Of course, you can still suffer setbacks with good technical underpinnings to any stock market trend. However, the action continues to be encouraging. The percentage of stocks showing positive money flows and buying pressure has continued to increase. Not only is the breadth impressive, but it also extends to all sizes of companies: large, mid, and small caps.

Have you noticed–sell-offs do not get very far before buying comes back in? There is still tremendous buying power on the sidelines, trillions as a matter of fact. Investors have quickly switched from fear to fear of missing out. The innate herd instinct is alive and well. Growth stocks have again become leaders switching from value ones for the first half of the year. The Bull has written in prior blogs that this was likely.

The easiest money has probably been made. Progress from here may become choppier and more selective. But the Bull does expect higher prices. Setbacks are bound to happen, but the overall trend now is for recovery and higher levels.  Stay steady my friends.

El Toro Solo