Summary

• After nine straight up weeks, the bull market pullback we flagged finally arrived, and it stopped cold at the 50-day moving average.
• The selloff reset an overbought tape without breaking trend. RSI fell from above 70 to the low 40s, and Thursday’s bounce came on broad participation.
• Our Money Flow Breadth Ratio ticked up to 60%, back in buy territory, and we’re holding equity exposure at 100%.
• The bigger risks haven’t gone anywhere: record margin debt, fading retail demand, and a 10-year Treasury that now out-yields the S&P 500.
• This sets up more upside for now. It does not erase the odds of a deeper correction this summer if forward earnings expectations crack.

Two weeks ago, after the S&P 500 (SPX) logged its ninth consecutive weekly gain, we discussed that a bull market pullback was coming. It came. From the May 27 record near 7,621, the index slid 4.5% and bottomed almost