Photo by Maxim Hopman on Unsplash

After the breadth thrust indicator hit the confirmation level, S&P 500 is experiencing a pullback. Would the current pullback mark the start of another round of bear market selloffs? Here’re the market insights using an analog comparison of the S&P 500 from 1990 and the midterm election cycle.

Watch the video below to find out where the market is heading, the likely scenario to play out and the strategy to be adopted during the market bottom process.

Video Length: 00:10:43

S&P 500 is currently testing the key level as illustrated in the video. It is essential to pay attention to the characteristics of the price movement and the volume in conjunction with the analogs as shown.

Despite the pullback in the market, there are still a handful of stocks from the outperforming groups (Biotech, Solar, Lithium) bucking the trend on top of the significant improvement in the market breadth. As long as the trade entries for the outperforming stocks are working and gaining momentum, it makes sense to participate for more upside with a conservative risk management strategy.

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