- The QQQ gets back above its 50-day moving average.
- The IWM gets above its 50-day moving average or at the least continues to rally.
- An increase in the number of S&P 500 components making 20-day highs.
- Downside follow-through of the Utilities Select Sector ETF (XLU) vs. the Consumer Discretionary Select Sector ETF (XLY) sector.
- And lastly, signs of accumulation through price and volume acceleration.
Absent such developments, I will continue to view the market with a more defensive approach. The level to watch on the S&P 500 on the upside is the all-time high at 1897. On the downside, key levels to watch are 1872, 1850, 1834 and 1814.
At the time of publication, the author held no positions in any of the stocks mentioned.
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