A Short-Term Breather in a Medium-Term Uptrend 📉📈

As anticipated, equity markets took a breather late last week, with a modest pullback materializing after a strong run in recent weeks. The major indices experienced the following declines:

• S&P 500: down 2.6%

• Dow Jones Industrial Average: down 2.5%

• Nasdaq Composite: down 2.5%

• Russell 2000: down 3.5%

📉 While short-term corrections are a natural part of any rally, the underlying data continues to tell a constructive story 📊.

Medium-term indicators remain firm, and in several areas—the case for further gains into June 📆 continues to build.

We are watching for a break back above the daily mean level at 5891, which would confirm that the pullback is indeed just a pause in the trend. A decisive close above that level could act as the trigger for the next leg higher, with upside potential building into June.

Interestingly, the pullback may have been somewhat tempered by the late news of President Trump's decision to delay planned 50% tariffs on European Union imports, now pushed back to 9th June 🇺🇸🇪🇺. With markets closed today, all eyes are on tomorrow’s open for the first read on how investors digest that development.

For now, we remain in the camp that views this recent weakness as consolidation within a broader uptrend—not a reversal 🚀.

More to follow as markets reopen tomorrow.