Photo by Yiorgos Ntrahas on Unsplash

Markets have had a nice, 5% sell off, as expected (and completely normal within any given year). Markets on Monday got within a stone's throw of the 100-DMA before rallying, and we're looking today for a continuation of that rally effort.

So far, no buy signal has yet been triggered. The next point of resistance will be the convergence of the 20- and 50-DMA, somewhere around 4,450. After that a pullback, which will provide a decent opportunity to add exposure to portfolios, and finish this cycle of correction, probably sometime in September.

That will set up for the typical October-November-December market action. Watch for a pick-up in volatility during this period, ahead of the end-of-the-year push. Underperforming hedge funds will also push assets into the markets. How the timing of all this actually plays out remains to be seen.

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