- It would be normal for markets to go sideways over the summer months, especially considering the fast spread of the Covid Delta variant, and more cases globally.
- Other obvious triggers for a consolidation would be a more aggressive signaling for a change in Fed policy, which is unlikely given the Powell testimony last week, and much hotter inflation numbers, which are possible given recent trends.
- Since this is the beginning of Q2 earnings reporting season, if good earnings (on average) are being sold into, that means the market is ready to take a breather.
For further details see:
Nasdaq Looks Ready To Consolidate Its Gains