Ideally Prices Rally this Week
On Friday morning I mentioned that “for the first time in a while we saw upward movement yesterday into the traditional risk-on instruments such as the utility stocks (XLU) and treasuries. Normally this is not a big deal because it’s normal behavior but because it has not occurred recently, it may be a sign that markets are beginning to move as they traditionally have. If this is true, then a normal oversold rally may ensue.” This is how Friday perfectly played itself out and the market is now back to being short-term neutral.
The key now will be the follow-through. Ideally prices rally this week. If they do all is well and the bull market will likely continue.