The primary trends are still higher and while it is tempting to think the market is ready for a more meaningful pullback, there is zero evidence that a larger pullback will develop. Of course that doesn’t mean we should just blindly trust the trend, it means that we need to remain focused on price action and monitor key levels of support in the averages and more importantly, in the stocks you are involved in. It is tough to trust a market to continue to add to its gains when trends have become stretched but as long as key support levels hold the buyers continue to get the benefit of the doubt.

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