Riding the wake of last week’s trade news and weekend “news” regarding Chinese pledges to buy $200 billion worth of stuff from the U.S., the rally has stayed alive. But the action has been less than robust as the indexes have mostly churned around their highs over the past two days.
The NASDAQ Composite Index shows the basic price action here with two narrow price range days where the indexes closed mid-range or lower on above-average volume. Is this churning action indicative of an impending pullback, or tight action indicative of further highs?
From an index point of view, this is tough to call, but as always, I simply defer to and rely on the individual stock set-ups. In most cases, leading stocks are getting further extended and are out of buying position, so the potential for pullbacks, at least in individual stocks is rising.
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