MONDAY
Lots of talk about an overdone market with Way too low volatility that surely must lead to a selloff it is said. Again, a selloff will come, but look at how the indices have acted of late: RUTX, SP400 on big runs and are now resting. SP500, DJ30, NASDAQ had rested but then last week they started back upside with nice rallies.
Put another way, there is virtuous rotation ongoing as an area rallies to gains, then rests in place or with modest tests while other parts of the market rally. That means some new money still coming into stocks because if not, money would be pulled from one area and put into another, with the former falling while the latter rises.
For now the action in the indices is very good and the action in leadership is very good. They are moving up, resting, then moving up again. The algorithms are still out there but thus far the new highs have not been sold.
Source: Investmemt House