Still Need a Pullback, but Happy with Sideways

Markets rarely move directly in a line and in an early post we stated

“In a call with an investor yesterday I was asked “What would you like to see the Capital Market’s do?” My answer was simple, stay in a trading range of approximately 870 to 930 on the S&P 500, our favorite index for the next 90 days so we can get to the next earnings reporting season to check how companies are doing. If we go much higher, or lower, this will be in anticipation of events without complete data. Most likely my hope will not come true as market participants tend to get to optimistic and too negative at any given moment.”

While we are happy with sideways movements until we get more data points, please keep in mind a pullback would be a natural resting event for the markets.  JK

Comments are closed.