More of the Same

The last couple of weeks have been trying, to put it simply. Daily fluctuations, talking heads screeching about the next recession and lack of cooperation in Washington are enough to test even the most patient of us.

From my perch on the seventh floor I can see up 20th Street to UAB, but I also can look at the market without emotion or bias, and with the ability to draw upon three decades of experience deciphering market trends.

This is what I am observing: despite the volatility, on each pull-back the market does not fall as far as before and when it lurched forward, it moved ahead of the previous high.

What does this mean?

• The market has pulled back to where it traded last summer
• It is ‘building a base’, this is healthy and a normal part of what the market ‘does’
• It has not violated the long-term trend-line
• Supply (sellers) are getting ‘weaker’ as they are unable to push the market lower
• Demand (buyers) are getting ‘stronger’ as they have been able to push the market higher.

That is where we are - still.