Hey, Ross here:
The Fed is almost guaranteed to cut rates today.
That’s been priced in.
What hasn’t been priced in, is what Fed Chair Powell will say during his press conference.
Historically, markets tend to dip – at least for the moment – whenever Powell flaps his lips.
So I wouldn’t be surprised to see a quick pullback this week…
Especially because, from a certain perspective – many stocks are already pulling back.
Chart of the Day
The S&P 500 closed slightly higher yesterday, posting a 0.2% gain.
And yet, of the 500 stocks in the index…
Only 104 stocks closed higher – while 398 closed lower.
In other words, about 80% of the index was pulling back.
This is what we call weak market breadth.
In fact, when we look at days where the S&P 500 posted a gain – but there were more stocks closing lower than higher…
Then this was the “worst” day in the index’s history, in that context.
Now again, a lot of people are pointing toward this as a sign that the bull market is weakening…
That it can’t go on for much longer.
That may seem like an “obvious” conclusion…
But that’s not my take at all.
I explain in the Insight of the Day below.
Insight of the Day
Many stocks are “reloading” beneath the surface.
One of the most classic and proven bull market chart patterns is this…
Rally → Pullback/Sideways action → Rally resumes.
It happens in the broader markets…
It happens in individual stocks…
And it’s been happening for decades.
It’s a natural consequence of how market psychology works.
After a stock rises, we start seeing profit taking.
And for a time, the selling pressure can exceed the buying pressure – leading to a pullback.
But once all that selling pressure has been exhausted, the stock is now free to move higher.
Basically, that pullback/sideways action is what we call a “reloading” phase, where it’s setting up for the next big move higher.
That’s the ideal time to position yourself.
And as I said, right now, the weak breadth indicates that many stocks are in this “reloading” phase…
Which creates an ideal positioning opportunity.
And if you want to position yourself in the most explosive of these “reloading” stocks…
Then click here to watch me break down my top strategy for targeting these stocks now.
One recent trade this strategy pinpointed is now up 66% in just a few weeks.
The Fed acts in a few hours.
So make sure you take action before then.
Customer Story of the Day
“Ross is always current, on top of market trends and why they move.
It’s because of the “why” that I am an Alpha and Fire Trader’s member.
Well worth the investment! You will be glad you joined!.”
Ross Givens
Editor, Stock Surge Daily
