Cycling Down For Now

If the natural order of things continues, we should see one or 2 more days of cycling down in the major indexes.  Recently the tech heavy Nasdaq has been the market leader and in fact made an new all time high on Monday.  However, the other major indexes have so far failed to recover and get back to their highs of late January.

In terms of big cycle pullbacks, I don’t see another one till late spring, therefore my own expectation is we go higher again soon, and get the S&P 500 and the rest of the indexes back to new highs.

In the meantime, having sold late Monday and now closed multiple consecutive winning trades, I remain flat in the hope that we will see a re-test of around 2700-2720 in the S&P 500.  That is where I believe the best opportunity for a bottoming out will be.  As always, nobody knows what it will do next…but it remains fun to speculate, especially as it pulls back without me!

For now I remain flat and wait to pounce on the next move higher.

Good trading,

John