Coming Correction Could Be a Buying Opportunity

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Includes: DIA, QQQ, SPY
by: Jeff Pierce

The highs are close, but at this point, I do believe the coming correction will be a buying opportunity. The only thing that could change my mind is multiple high volume selling days based on deteriorating macroeconomic news. Right now I think the market has displayed enough of a bullish character to give this rally the benefit of the doubt.

We are at a point based on the percent of stocks above their 50 day moving averages that all but guarantee a correction, albeit likely to be a shallow one. Opening new longs right now after 6 weeks of gains is really pushing your luck.

% 50 day highs

% 50 day highs