From Investing.com: 2025-01-10 02:26:00

The market has shown resilience but also weakness in the past month, with the S&P 500 holding above key support levels while market breadth has deteriorated. A pullback of approximately 3.8% from recent highs has occurred, with the average stock declining roughly 7.2%. A breakdown below current support levels could signal near-term weakness and a shift in market dynamics. Poor market breadth is evident, with only 55% of S&P 500 stocks trading above their 200-day moving averages. Technical indicators suggest caution, with downside momentum building. The market’s response at the current support level will determine its near-term direction.

A key indicator of market oscillation, the percentage of stocks above their 20-day moving averages, has historically predicted market pullback bottoms. Positive divergence between the S&P 500 and this indicator suggests support could hold if historical patterns repeat. Current account allocations reflect a cautious stance, with equity exposure at 60% of a fully allocated position. A dynamic approach will adjust allocations based on market conditions, balancing growth opportunities with risk management strategies.



Read more at Investing.com: S&P 500: Large-Cap Strength Masks Broader Market Struggles and Bullish Challenges