After reviewing some markets, charts, and model readings on Wednesday night, these common themes stand out:
- The market has not yet deteriorated in an overly concerning manner.
- We have to remain open to a push to higher highs.
- We would rather be buyers than sellers.
- If more meaningful bullish turns show up on daily charts, we are open to adding to our positions. The move higher on Wednesday did not improve the daily charts in a meaningful way – we need to see more.
- It is too early to make a call for a prolonged correction, something that may change in the coming days if we experience further weakness.
- We also respect that even healthy markets experience corrections lasting a few weeks to a few months.
- From a longer-term perspective (next several months), all four of our market models remain in bullish territory .
The comments above are subject to change, but the big picture still looks good as of Wednesday’s close.