The commitment to the much-heralded pullback is not strong with the Dow Jones index in negative territory overnight but only just. In fact, the broader S&P 500 measure was positive!
To put you in the picture, there is no really important news around to move the market. The big wait is for quarter two profit results, which will come out over July-August. This will test the ‘green shoots’ of a recovery thesis that has helped the stock market rally.
There is a general feeling that this rally has gone too high and a correction is on the way of 10-15%, which could take the S&P 500 down to around the 800 region but some experts think support will come in at 850.
One thing is for sure, long-term investors could be buyers of companies they want to hold for a long time on a dip like this. They could cop a short-term loss but if they only care about the long-term, this is a great buying opportunity.
Commodity stocks on Wall Street went up after the recent sell off and that could help our market today.
On the economic front, existing-home sales rose 2.4% in May, which was better than April but was less than expected.
The Oz dollar is 79.47 US cents and gold is $US 924.90 an ounce. Oil is $US 68.83 a barrel, which is up $1.33.
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