Market Finally Blows Off Some Steam ⎯ Just A Pause Or Is The Rally Over?
The market seems to be showing some signs of wanting to pullback a bit after the run up over the past week or so. For the S&P 500, after surmounting that 4200 on last week and again on Monday of this week, it quickly retreated back below that level.
While this may not mean the end of the rally, it could be a signal of the market getting ready to blow off a little bit of that steam. A pullback here would likely bring back 4150 back into play as a point of support for the S&P.
From an individual stock standpoint, the big tech names have begun this selloff. Google (GOOGL), Microsoft (MSFT), and Nvidia (NVDA) have all started Tuesday’s session in the red, retreating back to support levels. Only time will tell if they can recover in the coming days to resume the rally. Tesla (TSLA), however, has not followed this path a continues to push higher this week.
As far as ETFs go, there since much of these moves have been led by the big names, there hasn’t been much participation by the ret of the stocks in these indexes and ETFs. When there is some broader participation from stocks that aren’t as heavily weighted in these ETFs the rally should begin once again.
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