General US Market Update - Heatmap

Heatmap SP500

...looks quite red but is less concerning than one might think. The pullback after the giant gains last week did not come unexpected. Also, the low volume indicated that the big institutions are not in selling mode. All good signals for a continuation of the resumed uptrend.

General Market Update

Stock Market Pauses After 2 Big Days
The stock market wavered Monday, taking a needed pause following the biggest two-day rally since 2008.
The Nasdaq composite was down as much as 1.4% early in the day, but then bounced back. After spending part of the day in the black, the main indexes faded in late trading. The Nasdaq closed with a 1.1% loss. The S&P 500 fell 0.9% and the Dow Jones Industrial Average lost 0.6%.

But selling picked up in the last hour of the session and indexes closed at the day's lows. It was bearish action, although not a surprise.
Stock Market Looks For Leadership
While the major indexes are in confirmed uptrends, investors still need stocks to break out and make gains. In that regard, the picture is still mixed.
The energy sector has been leading the market for much of the year and continues to provide opportunities.

Remember, the bear market destroyed the leadership — much of it in tech — that led the prior bull market. Fresh leadership could take time to develop and prove itself. With the amount of breakouts and bases investors have to work with right now, an exposure level of 20% to 40% seems adequate.

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