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Perfect Market Pullback

Perfect Market Pullback

July 05, 2023

The stock market began last week with a picture-perfect pullback to a support level at 4325 and then bounced to new highs for this current rally. I was anticipating a pullback to this level at some point and I’m happy to see it happen so quickly.

A pullback of this type often occurs around important resistance and support levels. My belief was that a retest at this level was necessary to start the next phase of the ongoing market rally, and it's positive that the market bounced so strongly off this support level. It shows investors are buying stock and adding to their portfolio during any market drop. There could be further retests of this price level in the coming weeks or months, but overall, the momentum is upward at this point.

As we move into July, I'm watching for the jobs report, inflation reports, corporate earnings, and another federal reserve meeting to see if the results further bolster the rally or spark additional market pullbacks.

´╗┐Photograph by:Thom Milkovic  on Unsplash´╗┐

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