It looks like the S&P 500 Returns for the Q2 with Europe closing higher and better than expected manufacturing numbers and the market is reflecting tat in the current ten point gain today. There is still a lot of chatter about where is or when will the pullback? Technically speaking April tends to be a seasonally bullish month and most technicians will take today’s start to the quarter as a buy signal.
When you take a look at the chart you can see that there has been four to five pull backs in the S&P 500 since December. I feel people are looking for larger pullbacks so they can make back what they lost sitting on the side and the market is not giving them the size of pullback needed to get them in the market. Each subsequent pullback keeps getting smaller and smaller.
The biggest pullback was back in December and was fifty points when the market hit 1250 and went down to test the 1200 support. since then there hasn’t been that big of a pull back and the biggest point deduction from the market has been half that when the market pulled back from 1375 to just under 1350.
If you’re still on the sideline I would recommend not looking for a 40-50 point pullback and revise your expectations on what percentage gain you attain since you have been timid and on the sidelines.
The next catalyst will be S&P listed companies as they announce earnings and with the conservatively revised expectations is quite possible to see most companies to beat earning but slightly miss on other performance metrics