The Gilmo Report

June 26, 2019

June 26, 2019

New highs for the indexes in this environment usually mean it’s time for a pullback. As I wrote over the weekend, “Despite the new highs, the market action has taken on a sluggish character with respect to individual stocks.” Some of that sluggishness turned into bearish action as a broad swath of leading and not-so-leading stocks have been hit with selling so far this week.

Yesterday’s sharp break off the highs took the NASDAQ Composite Index back down toward its 50-dma and right into its 10-week moving average on the weekly chart. This led to a logical bounce this morning that was likely based on Micron Technology (MU) gapping higher after beating lowered earnings estimates yesterday after the close, which in turn sent beaten-down semiconductors rallying as well.

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