Seasonally, the first two weeks of July have been great for the stock market. Now that the first two weeks of July are behind us, will the stock market take a breather until September? After how the market acted this week, it certainly feels that way. Let’s start with a synopsis of the broader indexes, followed by an analysis of market breadth indicators. A July Pullback? This week, there were some dynamics in the financial markets worth pondering. The S&P 500 index ($SPX) hit a record high on Tuesday and then gapped lower on Wednesday, with the selloff continuing on Thursday and Friday. Three substantial consecutive down days triggered fears among investors and led to a selloff in large-cap mega-growth tech stocks. The Nasdaq Composite ($COMPQ) was hit the hardest. The daily chart of the Nasdaq below paints a picture of the magnitude of the selloff. CHART 1. THE NASDAQ…
