The U.S. stock market is pulling back from sixteen-month highs. So far, the word benign best defines this retreat, as the S&P 500 bounced off our critical line in the sand. That’s good news for the bulls, for now, and it gives them the benefit of the doubt. But that will change, and change quickly, on any drop below SPX 4,300.
So, as the summer boil comes to a close, and this pullback remains a regular garden variety, we are trading light as we keep our eyes peeled on the SPX 4,600 and 4,300 levels. We believe any break out of this 300-point range in either direction will be significant and tradeable, as it should determine the overall direction of the stock market for the remainder of 2023.
Anything between is just noisy noise.
The views expressed represent the opinion of Good Life Asset Strategies, LLC. The views are subject to change and are not intended as a forecast or guarantee of future results. This material is for informational purposes only. It does not constitute investment advice and is not intended as an endorsement of any specific investment. Stated information is derived from proprietary and nonproprietary sources that have not been independently verified for accuracy or completeness.
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