We continue to expect this election year to see a decline from April to June and believe that last week’s 6 month cycle high marked that high. Equity markets in Presidential election years have a nasty habit of dropping during this period and the eighth year of a Presidential term sees nothing more than a temporary bounce in June before a decline to new lows.
The S&P 500 was turned back from 2,110 – the same level where the big sell-off began last August as well as the high in early November. Watch for a re-break of the breakout level at 2,075. 2,033 is the new pivot low. A break of that level will confirm that the herd has turned.
Get your copy of the April Lindsay Report at Seattle Technical Advisors.