Is This Breakout for Real?

Zacks

The choice of topic for today was easy. After hitting a new record high of 1709 back in early August we have been trending lower. And much of that time has been spent below the 50 day moving average (now at 1665). 

The reasons for this consolidation / mild correction are many. 

1) Profit taking after long bull run. 

2) Concerns about Syria

3) Concerns about QE Taper

4) Concerns about Debt Limit

5) Concerns about Slowing Earnings Growth

And for some people it is "All of the Above". 

So is Monday's move back above the 50 day moving average a sign of a new upward leg for the bull market? Or is it a false alarm and we head back under the 50 a while longer? 

What say you on the matter? And what is your rationale? 

Share it all in the comments section below. 

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