OK, couldn’t resist a bit of race car spotter dialogue, what with the Indy Car season opener coming this weekend. Yesterday the S&P 500 closed within a hair of the January highs, with less volume than the previous two days. Money flow shows they are piling in, and the needles are still buried on the momentum and sentiment indicators.
I’m not inclined to put on any new positions on a Friday, but will go out on a limb and call for a pullback to start today or next week. Reserving, of course, the right to change my mind if the facts change. Right now, conviction is not high enough to go short. Here’s what I’m looking for: a pullback to the support in 1090-1095 area on the S&P, followed by a sideways consolidation for a week or so. That’s where I will add to long stock holdings.