Bulls are finding it harder to dominate (SPX)

By Lawrence G. McMillan

The failure of the market to follow through Monday on Thursday and Friday’s strong gains resulted in a pretty nasty day on Tuesday.  Breadth was terrible, volatility rose sharply, and $SPX retreated to the support near 1620.  Overnight, S&P futures are up about 7 points, so it appears that the 1620-1650 range is containing prices for the near term.  A breakout from there could generate some momentum in the direction of the breakout.

The bulls are finding it a little harder to dominate like they did from November through mid-May.  The top in $SPX is now almost three weeks old.  Perhaps “sell in May and go away” really is going to work this year, much to the chagrin of the pundits who have already declared that it didn’t...

This commentary was taken from this morning's pre-market edition of The Daily Strategist newsletter.