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It’s the final week of May, and it’s a shortened holiday week. But don’t let that fool you - there’s no way you can afford to be tuned out with the slew of data, Fed minutes, and key earnings reports this week. 

Markets are already on the move this Tuesday, and last week, we saw our first real bit of selling in over a month.

Is this the turning point the bears have been waiting for? Or, do we finally have an opportunity to buy the dip? Let’s discuss…

Buy in May, and Stay

Bears ran the table last week, but bigger picture, bulls are still very much in control of this tape. The key for me this week is whether the pop in consumer staples was a one-off event or the start of a new trend.

If the former, then we should see this morning’s rally continue into the end of the week. But if this is just the start of bears reasserting themselves, then get ready for more bumpiness ahead.

I still prefer the bullish case here, especially with technology being the leader over the past month and industrials hitting new all-time highs already.

Seeing communications are the leader over the past year isn’t bearish either - there’s a technological twist to that sector. Last week just looks like bears finally got one punch in after being beaten up over the past month.

As long as bulls maintain their composure, expect the beating of the bears to continue.

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