The major averages and leading stocks are pulling back to digest their recent gains as investors make their way through the latest round of economic and earnings data. So far, the market’s reaction has been tepid at best which puts serious pressure on the current rally. Until a clear picture can be formed as to how companies fared last quarter, one could easily expect to see more of this sideways to lower action to continue. The market is in the middle of its46th week since the March lows and the rally remains intact, albeit under serious pressure from our point of view. The Dow Jones Industrial Average sliced and closed below its 50 DMA line on heavy volume for the first time since October which is an ominous sign. The Nasdaq and the S&P 500 closed above their respective 50 DMA lines which, in the near term, is a healthy sign. Now that the market is clearly under pressure one would be wise to adjust their exposure accordingly.