The following is just a small excerpt from my latest Weekly Strategy Session (please click on that hyperlink for details about trying it out). which I published for members and 12631 subscribers this past Sunday.
It is also worth reiterating another broad market theme of the current pullback which should raise more than a few prudent eyebrows: Despite the carnage in tons of growth leaders in recent weeks, the NYSE McClellan Oscillator (“NYMO”), which is a simple market breadth indicator tool, never once dipped into even mildly oversold territory.
Generally speaking, when NYMO is above zero it tends to indicate bullishness for stocks, and below zero, bearishness. However, extreme readings can indicate overbought or oversold conditions. Above 50 is considered to be overbought, while below -50 is considered oversold.
Of course, a major reason for this is the rotation into other sectors (discussed herein). Still, it is hard to believe bulls will get off this easy, even compared to the benign broad market pullbacks of 2013.
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But Chess, price is king!
True