Major averages rose fractionally yesterday on lower volume that was well below average. Economic news was scant. This was a quiet, uneventful day for both US and global markets which appears to be the calm before the storm as Brussels, Belgium was attacked. 13 people have been reported dead. Futures are consequently lower by about -0.5%.
With the indexes in an extended position as the S&P 500 approaches its prior December highs and the NASDAQ Composite approaches its 200-day moving average, a pullback is not to be unexpected. Today's terrorism news out of Belgium gives the market an "excuse" for a pullback, but investors should be watchful in the event it turns out to be something more substantial.
Long positions taken as a result of recent pocket pivots should be kept on a tight leash as risk-management becomes a priority during any market pullback, whether "normal" or not.
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