Small cap market in correction.
We want to see small cap leading the action.
Short term action is cause for caution, but most leading stocks are holding up well.
Many stocks which had Earnings Episodic Pivot in recent months are having orderly pullbacks.
That indicates possibility of another leg higher after a correction.
On Market Monitor I would like to see the primary indicators drop down to around 500. Similarly on stocks up 25% in a month would like to see numbers below 25. That kind of pullback with breadth still positive might be very good setup for another leg higher.
There is strong reason to believe we have not yet reached the top for this year.
Stocks after stocks are breaking 3 , 5, 7, 10 year high, that kind of action points to a long term range breakout scenario for the market. Heavy selling can change that possibility.
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