• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Stock Are The Markets Just Pulling Back, or Is It More?
Stock

Are The Markets Just Pulling Back, or Is It More?

by June 24, 2023
by June 24, 2023 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

The markets pulled back this week amid global recession fears that followed the Bank of England’s interest rate hike. Most concerning to investors was that the ½% increase came on the heels of an elevated U.K. inflation report for May. Thoughts that the U.S. may get stuck in a similar position pushed the S&P 500 lower as rising interest rates are negative — particularly for Growth stocks.

Other factors were at play in last week’s pullback as well, however, with the broader market Indices exhibiting an overbought condition after five weeks of gains. Most stretched were Technology stocks, which were the top performers and were led by Semiconductor and Software stocks.

Daily Chart of the Nasdaq Composite

Above is a chart of the Tech-heavy Nasdaq, which has gained almost 17% since March. Gains this month pushed the RSI into an overbought position, with an early June period of consolidation being enough to appease the markets. The more recent overbought condition has brought a pullback into play, with heavy volume on two of this week’s down days, which indicates distribution.

At this juncture, each of the moving averages remain in an uptrend, with the markets exhibiting surprising resiliency in the face of renewed global recession fears. In fact, most of the names from the Suggested Holdings List of my MEM Edge Report outperformed the markets and are holding up above key support.

On the Nasdaq chart above, I’ve highlighted the characteristics of this Index prior to last year’s late August-into-October decline, which resulted in a loss of over 20%. While I’m not anticipating a decline of that magnitude, it’s important to be aware of what to be on the lookout for to signal more than just a 5% pullback.

These signals can be used for individual stock holdings as well. At this time, I’m focused on names in leadership areas that are holding in better than the markets. These stocks will go on to be your top performers once the market pressures are lifted.

Paying attention to any sector rotation will also be key. Last week, we saw a larger pullback in the Industrial and Material sectors, which are cyclical and will be more sensitive to fears of a global recession. The pullback in these areas, as well as Technology, pushed the Equal Weighted S&P 500 down 2.3% for the week. A lessening of participation in the markets would not be a positive.

If you’d like to be alerted to any shift in my outlook for the broader markets, as well as become tuned in to the leadership stocks that will take the markets higher as downside pressure subsides, use this link here to trial my twice-weekly MEM Edge Report for a nominal fee.

Warmly,

Mary Ellen McGonagle, MEM Investment Research

You Might Also Like
  • Can Nvidia’s Stock Skyrocket Again? Key Levels to Watch Now!
  • DP Trading Room: Carl’s Grab Bag! – Chipotle (CMG), NVDA, Bahnsen & Hussman
  • Three ETFs Showing Renewed Strength
  • Is The S&P 500 Forming a Huge Double Top? A Q&A with David Keller, CMT
Share
0
FacebookTwitterPinterestWhatsapp

previous post
FTC sues Amazon over ‘deceptive’ Prime sign-up and cancellation process
next post
Downside Targets For S&P 500 Pullback

You may also like

An Awesome Breakthrough in S&P 500 and Nasdaq: Will the...

July 5, 2024

This Report Might Self Destruct in 5 Days

April 11, 2025

Lagging Indicators Confirm Bearish Phase For Growth

October 14, 2023

Is Inflation Permanently “Dissed”?

July 14, 2023

Rules-Based Money Management – Part 6: Putting It All Together

May 23, 2024

Tech and Staples Leading Choppy S&P

March 27, 2023

The Wisdom of Jesse Livermore, Part 6

May 24, 2023

EASY SCAN! Find Growth Names in Small-Caps

February 14, 2024

In this Market, Think Supply and Demand; Is Apple a...

September 10, 2023

Can the S&P 500 Move Meaningfully Higher Without NVDA?

June 28, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right Now

      May 31, 2025
    • Leadership Rotation Could Confirm Corrective Phase

      May 30, 2025
    • Run Your Stock Portfolio Like a Pro Sports Team

      May 30, 2025
    • U.S. foreign tax bill sends jitters across Wall Street

      May 30, 2025
    • Amazon taps Xbox co-founder to lead new team developing ‘breakthrough’ consumer products

      May 30, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,765 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,472 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,451 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,432 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,308 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,106)
    • Investing (538)
    • Stock (2,581)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right...

      May 31, 2025
    • Leadership Rotation Could Confirm Corrective Phase

      May 30, 2025
    • Run Your Stock Portfolio Like a Pro Sports Team

      May 30, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,106)
    • Investing (538)
    • Stock (2,581)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Limited Leadership, but Still Plenty of...

    June 17, 2023

    The Best Five Sectors, #7

    February 17, 2025

    Economic Modern Family — Home for...

    November 24, 2023
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here