850-875

ice_tea

In order for a market to actually mount a real bull run, it must sell off and then consolidate. The short-term momentum players who've made big profits since the March 9 rally are now selling and raising cash. That cash likely will remain on the sidelines until the market settles down to more stable levels. And when we do see this market settle, that will be the time when the cash on the sidelines is funneled back into equities en masse.

If we look at the chart below of the S&P 500 Index, we see that those more stable levels are somewhere around 850-875. That's above the short-term, 50-day moving average of the S&P 500, yet well below the long-term, 200-day moving average.

wower

jiny2873

Mushroom

ding