Momentum Monday – Trying To Be Patiently Constructive

This post is by Howard Lindzon from Howard Lindzon

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Good morning.

I will get right to this weeks episode. Ivanhoff and I tour the market as always looking for trends and momentum. You can watch this weeks episode right here. I have also embedded it below on the blog:

Here are Ivanhoff’s thoughts:

After a few up weeks in a row, the stock indexes finally had a down week. Interest rates are slowly rising again, and so is the US Dollar. Those factors have been big headwinds for stocks this year. The big question is if this is just another pullback to a rising 20-day moving average or the beginning of a new leg lower. The groups that led the market higher in the summer – biotech and software, are already below their 20-day moving average and the indexes are starting to stall near areas of technical resistance.

The good news for the bulls is that there are still plenty of decent-looking long setups and the market continues to react positively to most earnings reports. Even last week when most stocks were under pressure, we saw companies beating earnings estimates like GLBE, WOLF, and BILL breaking out in big volume.

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