In what seems to be the trend for most of 2015, price breakouts above previous high points have largely been rejected. While that’s not to say that the bears have come in and taken control over the intermediate-term, we have seen small pullbacks until the bulls get ready to step up again. Eventually, as I have written about all along, this three or six month trading range will resolve itself to the upside; it just doesn’t look like it’s right here and now.
My from the bullish camp, I think it’s a strong positive that the bears cannot make any meaningful headway on declines. The bulls may step aside at new highs, but they come right back to work into any pullback. Eventually, the economy and fundamentals will catch up with price and then we will see stocks blast again to the upside.
The bears, on the other hand, are leaning on the market being on the expensive side as well as sentiment being too positive. They also are hanging their hats on the strong dollar and the Fed about to raise rates. I don’t buy any of their arguments for more than the short-term.
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