After three strong weeks for the major indexes, the market is taking a pause. The averages are basically flat and consolidating previous gains. Despite the huge amount of economic data released (and with Fed’s Yellen in focus) nothing really has changed. It is clear that interest rates won’t be raised soon and the market seems to know that. With the end of the Greek drama (so far), the stabilization of the situation in Ukraine, the winding down of the earnings season suddenly looks like there is nothing that can move this market. I do think we are heading higher and this is just the market telling you that needs to catch its breath. Wall Street’s current darling (Apple) is in tandem with the market and decided to rest a bit as well. This pullback could be a good entry point for those that missed the train. The VIX is at good levels and the breadth has been positive overall. A plus, we haven’t seen distribution lately which is a sign that institutions are not dumping shares.
Below is a weekly chart of the Nasdaq Composite.