QQQ - I'm Thankful For This Pullback. Finally It's Here
2024-04-17 08:30:00 ET
Summary
- After reaching new highs, the S&P 500 has experienced a sharp pullback but remains significantly above its October 2023 lows.
- I've been preparing for a market pullback and am happy it has finally arrived.
- We might see more downside in the near term as the SPX's short-term uptrend has been breached.
- I view a steeper pullback as a golden opportunity to reload exposure. I highlight the key levels to watch.
I have been wondering when the proverbial pullback would arrive, as the S&P 500 ( SPX ) ( SP500 ) has been on a "nearly" vertical ascent since it bottomed out in October 2023. With the SPX topping out at the 5,265 level before retracing 4% toward April 15's lows, it has ruffled some feathers. However, the SPX remains more than 23% above its October 2023 lows, reminding investors that it has already broken above its previous all-time highs as it scaled a new peak this year. Bearish prognosticators are expected to return in full view, capitalizing on the recent volatility, as they look to dust off their "bears in hibernation" thesis. After being stunned by the force of the bullish uptrend over the past six months, I believe we can cut the bearish investors some slack, allowing some opportunities for them to apply their toolkit and make some "timely" bearish bets on the direction of the S&P 500....
I'm Thankful For This Pullback. Finally, It's Here