Christian Tharp, CMT from T3 Live joined Benzinga's Premarket Prep team to talk about the recent pullback in the market.
Category
🗞
NewsTranscript
00:00Does this dip in the S&P 500 like indicate a new trend to the downside versus just a pullback?
00:06I mean right now it looks just looking at the chart
00:09Like a pretty similar pullback that we saw like you mentioned back in April then we ended up moving higher from there
00:15What cues would you be looking for that? Like, okay, this is gonna be a sustained downtrend now
00:20The trend has shifted versus no, we're still in this bullish channel. This is just a pullback as we often see
00:27Gotcha always the million-dollar question, right? Yep
00:31Exactly. So you go back what we're watching multiple levels on the way down
00:36You know, certainly we always have to pay attention to things like the 200-day moving average
00:40We have to pay attention to things like that
00:41I tend to focus more on price itself that whole price is king mentality
00:46And so as of right now having broken out of that channel again, unless the market sends me a message
00:52Otherwise it did so at the same time. It was it had weakening momentum on the way up
00:57So it was kind of saying hey, look, we've had a great run since April
01:00Let's take some healthy profits when you look at what happened in the market and you look at that rotation
01:05It looks like a healthy overall bull rotation. So I wouldn't think no matter how wherever this terminates
01:11I wouldn't think it's putting the bull market in jeopardy in any way
01:14End of July ish tends to be seasonally can be a little weaker. So seems to be normal right now
01:21You start breaking things like the high you just mentioned from the previous pullback, I think it was five six seven percent back there
01:28Right around that you can call it 50 to 50 area from that old high
01:32You know from that where we pulled back there
01:34I wouldn't want to see us fall back below that that would be a little bit of a concern to me certainly
01:4110% is that psychological mark for the market? So I wouldn't want to see things like that get down. Otherwise
01:47We are simply looking this is a nice. Hey, look at that nice great three month plus run
01:52You can't go up forever. It's healthy seeing a little rotation
01:57But areas we wouldn't want to see again as you look at that old peak from back in the April area
02:01I wouldn't want to go back below that and there are other trend lines that we're watching
02:05But right now I wouldn't make a big deal out of it