Why stocks are ready for a pullback
by Patti Domm
Stocks have been set up for a near-term pullback that could give a year-end rally fresh legs into the new year, say some technicians.
John Kosar, chief strategist at Asbury Research, has been expecting a sell-off before Thanksgiving, and he says this could be it. The S&P 500 was under pressure Thursday, as oil prices fell. The index slid below 2,064, its 200-day moving average.
“We’re up against a lot of overhead resistance,” he said. “We had a nice move off those lows from August and September. We had a pretty good sell-off in high-yield bonds. What that effectively did was drive those yields up. Generally if you have widening corporate bond spreads that usually spooks the stock market, and that was one of the things I was looking at.”
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Asbury Research subscribers can read Wednesday morning’s (November 11th) research report that John Kosar’s interview in this column was based on, entitled 6 Reasons For A Near Term Market Top, by logging into our Research Center.