Globe editors have posted this research report with permission of Phases & Cycles Inc. This should not be construed as an endorsement of the report's recommendations. For more on The Globe's disclaimers please read here. The following is excerpted from the report:
At the start of May, with the markets just off their 2016 highs, our Market Comment was headlined "Selling pressure will appear in May. But the bulls remain in control of the markets." We then emphasized three major points.
First, the advance off the February lows was a little stretched, some short-term technical weaknesses were appearing, and cyclical pressure was building. Second, a "corrective and consolidating" period was expected to emerge, one that could last for an extended period of time but without doing major price damage. Third, we declared that "the bullish show has more upside acts to follow" which should eventually see "a move to new all-time highs in the S&P 500."
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