The market has now officially gone a month without any meaningful pullback or any signs of being oversold. This is obviously something that rarely occurs but it’s also tied into the fact the Fed (Janet Yellen) has done a masterful job of assuring investors that they would do their best at “managing volatility” through multiple means including the greatest level of transparency the Fed has ever made available. Whether this is long-term manageable is yet to be seen, especially with global recessions occurring in multiple areas of the world. Without any jolt to the system, prices on an intermediate term basis will likely continue to slowly move higher. Shorter-term, the market is overbought and eventually we’ll see a normal 1-3 day pullback. These pullbacks should be viewed as buying opportunities.
About Larry Connors
Larry Connors has over 30 years in the financial markets industry. His opinions have been featured at the Wall Street Journal, Bloomberg, Dow Jones, & many others. For over 15 years, Larry Connors and now Connors Research has provided the highest-quality, data-driven research on trading for individual investors, hedge funds, proprietary trading firms, and bank trading desks around the world.
Larry has been published extensively, with titles like How Markets Really Work, Short Term Trading Strategies That Work, High Probability ETF Trading, and The Connors Research Trading Strategy Series including our latest Guidebook High Probability Trading with Multiple Up & Down Days.