Last week's sell-off eased some of the euphoria that had pushed 92% of U.S. stocks above their 200-day moving average, register the highest 13-week RSI since 2013, and see the most stocks trading at their 52-week highs since 2013.
While the extreme over-crowdedness was relieved, we are far from fat-pitch buying levels. While the S&P 500 could chop around above 3700 for a few days/weeks, the risk is clearly to the downside. Patience will be rewarded for those willing to hold cash.
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