Stocks rarely move in a straight line. Even during strong, healthy advances, investors must be prepared for pullbacks, failed breakouts, shifting leadership, and periods of uncomfortable volatility.
The important question is not whether volatility will occur—it will. The more useful question is whether the evidence points to normal market behavior or a meaningful deterioration in the market’s longer-term risk-reward profile.
In this week’s video, we examine the market through multiple timeframes and perspectives, including:
The S&P 500’s trend, moving averages, support levels, and historical retracements
Long-term market breadth and the NYSE Advance-Decline Line
The technical health of the Nasdaq
Technology’s leadership relative to small caps, financials, industrials, and consumer staples
Signals from leveraged loans and the credit markets
Levels and developments that could help distinguish between volatility to ignore and volatility to respect
The objective is to identify the observable evidence that would support continued patience—and the evidence that would justify becoming more defensive.
Video Length: 00:29:27
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