Previously, I wrote how indiscriminate buying would be replaced with selectivity and that the market was approaching an important make-or-break moment following its rapid run-up since March.
The S&P 500 remains below critical resistance, so the risk of weakness remains. However, our long-term market signal still suggests investors should be buying if the market swoons. Specifically, the percentage of stocks in our 1,500 stock universe that are trading 5% or more above their 200-day moving average (DMA) is just 12.8%. That's up from a low of 2.2% in March, but it's still far below levels