Market Rallies To All-Time Highs
With the 4th of July weekend upon us, this post will be slightly shorter than usual. Such will ensure you “pitmasters” can get to work doing what you do best.
As last week, the not only got off the mat, but it rallied back to new highs. That action continued through this past week.
The technical backdrop is not great. With the market back to 2-standard deviations above the 50-dma, conviction weak, and investors extremely bullish, the market remains set up for additional weakness.
However, we are in the first two weeks of July which tends to be bullishly biased. After increasing our equity exposure previously, we will give the market the benefit of seasonality for now.
With the “money flow buy signal” not yet back to a typical peak, such suggests another week or so of upside is likely. However, as noted, we suspect there is not much upside in the market for current levels.