US stocks slipped lower overnight following strong economic data but the pullback by the S&P500 wasn’t significant in terms of the advance from May’s 3810 low. We still believe the next 10% move is on the upside but following the sentiment sapping drop since November, it’s likely to be choppy as opposed to explosive on the way up. Interestingly the volatility index (VIX) fell -1.9% overnight, not the usual move on a weak night, this is a supporting indicator to our positive view i.e. professional investors are paring back their bearish positions.
MM is neutral to mildly bullish US equities over the coming weeks/months
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