The stock market’s pullback is healthy

The stock market’s recent pullback may have bought the market’s recent rally more time.

That’s because short-term market timers since the beginning of February have on average significantly retreated from their prior bullishness. As I indicated two weeks ago when anticipating a market pullback, “it would be a positive sign if the timers on balance quickly jump off the bullish bandwagon at the first sign of market weakness.” In that event, the pullback would likely be relatively modest and the market’s rally could resume fairly…