{"id":6574,"date":"2020-05-01T16:22:41","date_gmt":"2020-05-01T20:22:41","guid":{"rendered":"https:\/\/morpheustrading.com\/blog\/?p=6574"},"modified":"2022-04-06T15:04:57","modified_gmt":"2022-04-06T19:04:57","slug":"may-2020-pullback","status":"publish","type":"post","link":"https:\/\/morpheustrading.com\/blog\/may-2020-pullback\/","title":{"rendered":"Rally Pullback or Exhaustion? Watch Leading Stocks at 20-day Moving Averages"},"content":{"rendered":"\n
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The April stock market rally was impressive, but can it carry into May? The performance of leading stocks next week is key. <\/h1>\n\n\n\n

The past several months in the stock market were a wild ride, as stocks got slaughtered throughout late February and early March, then reversed sharply higher in a “V-shaped” recovery that began in late March.<\/p>\n\n\n\n

Fortunately, our rule-based market timing system kept subscribers completely in cash and on the sidelines<\/a> during the March melee. <\/p>\n\n\n\n

Then, in early April, we carefully began jumping back into the market because the price and volume action in leading growth stocks was encouraging. <\/p>\n\n\n\n

Those bullish chart patterns were not perfect, but were good enough to begin putting money to work on the long side. Specifically, many quality stocks began breaking out on strong volume from decent basing patterns<\/a>. <\/p>\n\n\n\n

Many stocks only managed to recover a portion of their previous losses in the March rally, but bullishness in the form of leadership and breakouts to new highs also began emerging in top stocks. <\/p>\n\n\n\n

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