In today’s briefing:
- Pullback Underway; Further Downside Limited?; Buys in Defensives and Commodity-Related Sectors
Pullback Underway; Further Downside Limited?; Buys in Defensives and Commodity-Related Sectors
- A pullback in global equities is underway following steep uptrend violations on MSCI ACWI (ACWI-US) and EURO STOXX 50. Both are 4-5% off their highs; further downside may be limited.
- Several 5%-10% pullbacks are to be expected in any given year, particularly after the historic 5-month rallies, so we view this as healthy and normal within the ongoing bull market.
- ACWI-US is currently testing important support at $105; if this area were to break, next major supports are $102 and $99; this is where we would be buying.
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