The stock market is still bullish despite February’s pullback. What I wrote in last month’s newsletter still applies:
The market displays strength we have not seen in over a year. Here is a rundown of the positive developments that have occurred recently:
- Market breadth continues to strengthen.
- Sentiment has shifted to a decidedly risk-on environment.
- The S&P 500 has advanced above its downtrend line and 200-day moving average.
- The S&P 500 is now in a structural uptrend.”
Below is a chart of the S&P 500. Price action is still positive in that the index is still in a structural uptrend and is above its uptrend line and 200-day moving average.
The market is still bullish despite February’s short-term pullback.